TMI Blog1997 (12) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... r-State sales of vermicelli during the assessment year 1988-89. He however, did not file any declaration in support of such sales. 3.. Invoking the power under section 17(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 (for short, the TNGST Act ) the Government of Tamil Nadu issued a notification in G.O. P. No. 303 dated March 26, 1981 [No. II(1)/CTRE/ 164(c)/81] granting exemption in respect of the tax payable by any dealer on the sales of appalam, vermicelli and bakery products without a brand name or with a brand name not registered under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958-for short the TMM Act ), giving prospective effect from April 1, 1981. 4.. (a) In G.O. P. No. 804 dated May 30, 1988 [No. II(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interState sales of vermicelli he had effected during the assessment year 1988-89, depending upon the production or non-production of the C forms not only by the assessing officer, but also by the AAC and the Tribunal. 7.. The aggrieved assessee-dealer resorted to the present action-T.C. (R) No. 1 of 1994. 8.. (a) According to Mr. A. Chandrasekaran, learned counsel appearing for the assessee, the assessee-dealer is entitled to exemption in respect of interState sale transactions between April 1, 1988 and October 6, 1988 under section 8(2-A) of the CST Act and the assessee-dealer, if at all, he would say, is liable to pay tax on inter-State sale transactions which took place between October 7, 1988 and March 31, 1989 at appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied circumstances or (ii) if under the State law the sale or purchase of such is exempt only under specified conditions or (iii) if under the State law the tax is levied on the sale or purchase of such goods at specified stages or (iv) whereunder the State law the tax is levied otherwise than with reference to the turnover of the goods. (d) He would also state that G.O. P. No. 303 dated March 26, 1981 grants a total exemption, whereas G.O. P. No. 1316 dated October 7, 1988 grants only conditional exemption, in the sense of the limit having been prescribed to Rs. 3,00,000. Once there is a conditional exemption, he would fairly concede and state the sale or purchase of any goods shall not be deemed to be exempt from tax generally under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... couched, it will be crystal clear that as and when the Government may, by notification, make an exemption or reduction in rate in respect of any tax payable under the Act, the same may be done whether prospectively or retrospectively. But, if we take into account the language in which sub-section (3) of section 17 is couched, the phraseology whether prospectively or retrospectively is not there and what is stated therein is the Government is empowered by way of a notification to cancel or vary any notification issued under sub-section (1). That means that notification issued under the said sub-section can be only prospectively and not retrospectively. 13.. This aspect of the matter came up for consideration before this Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CST Act at the appropriate rate, depending upon the production or nonproduction of the C forms. 15.. In this view of the matter, the orders of tax authorities inclusive of the Tribunal that the inter-State sale transactions effected by the assessee-dealer are liable to be taxed at the appropriate rate depending upon the production or non-production of the C forms are not sustainable in law and therefore, they are accordingly set aside. 16.. The assessee-dealer would, of course, claim that the inter-State sale transactions effected by him between April 1, 1988 and October 6, 1988 and between October 7, 1988 and March 31, 1989 would amount to in quantified sums of money. He had also calculated the quantified sums. It is not possibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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