TMI Blog2001 (10) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable under item No. 8 of Part B of the Third Schedule which deals with all products of millets, rice, flour, brokens and bran of cholam, cumbu, ragi, thinai, varagu, samai, kudiraivali, milo and maize. Those products mentioned in item No. 8 are exempted from the levy of tax under the Act. 3.. In that application the dealer sought an opportunity of personal hearing. Without affording him any such hearing, an order was passed by the Commissioner holding that the item is classified as "food" falling under entry 12, sub-clause (iii) in Part "C" of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 which lists goods which are taxable at the rate of eight per cent at the point of first sale. 4.. Petitioner's challenge to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Court that, section 119 of the Income-tax Act under which circular was issued by the Board, conferred power to tone down the rigour of the law and ensure a fair enforcement of its provisions, by issuing circulars in exercise of its statutory powers which are binding on the authorities in the administration of the Act. It was observed by the court that power given under section 119 was therefore a beneficial power for proper administration of fiscal law, so that undue hardship may not be caused to the assessee and fiscal laws may be correctly applied. The object of the provision was to ensure a uniform and proper administration and application of the Income-tax Act. 8.. Although the language employed in section 119, Income-tax Act is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary for the appellate authority to go into the question as to whether the stand of the assessee is right and in accordance with the provisions of the Act, notwithstanding the fact that the clarification contrary to the stand taken by the assessee, has been issued. 11.. Though section 28-A does not in terms require a hearing be given to the dealer who seeks the clarification, in cases where the dealer seeks such personal hearing, such a dealer should be afforded personal hearing in all cases where the Commissioner proposes to record a finding which is adverse to the dealer/applicant. Had the dealer not applied for clarification and the matters were to be examined by the assessing officer at the time of assessment, the assessee certainl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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