TMI Blog2011 (3) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... be liberally construed. It is well-settled principle that a provision which is a taxing statute, granting concessional and incentives for promoting growth and development, should be construed liberally. Therefore, we are of the view that plant and machinery is used for the purpose of treating water for the bleaching and dyeing in the textile factory. Therefore, it cannot be said it is not used for the purpose of manufacture. The assessee has satisfied all the conditions enumerated and section 3(5) of the Act and hence, they are entitled to the concessional rate of tax under section 3(5) of the Act. In these circumstances, the order passed by the Tribunal is not in accordance with law and we set aside the order of the authorities below and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee claimed benefit of exemption at the concessional rate of three per cent under section 3(5) of the Tamil Nadu General Sales Tax Act, 1959. The assessee sold the water treatment plant for Rs. 11,00,000 to one Arthanavi Loom Centre, Kalarampathy, Salem. The assessee has filed form XVII obtained from the customer. The assessing officer was of the view that the assessee is not entitled to the benefit of the concessional rate on the ground that the sale of water treatment plant is not with reference to any of the plant and machinery mentioned in the Eighth Schedule and further held that the water treatment plant is not used for manufacturing of any goods. Aggrieved by that order, the assessee filed an appeal before the Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the water treatment plant cannot be used for the purpose of manufacture of any goods. The finding given by the Tribunal is based on valid materials and the same has to be confirmed. Heard the learned counsel on either side and perused the documents on record. The petitioner effected sales of reverse osmosis membrane system for Rs. 11,00,000 against form XVII under section 3(5) of the TNGST Act, 1959 and claimed concessional rate of tax at three per cent. The dealer sold the said plant to the customer and the said customer is the manufacturer of fabrics having looms and facility for dyeing fabrics. It was stated that the process involves consumption of large quantity of water for processing and production of steam using boiler. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the prescribed particulars in the prescribed form obtained from the prescribed authority: Provided further that any such dealer, who, after purchasing the goods in respect of which he had furnished any declaration, fails to instal the goods and make use of the goods so purchased for the purpose specified in the declaration or disposes of such goods in any other manner within a period of five years shall pay the difference of tax payable on the turnover relating to sale of such goods at the rate prescribed and three per cent. From a reading of the above provision, it is clear that the assessee has to satisfy three conditions: (1) the goods sold must be one as enumerated in the Eighth Schedule; (2) the said goods must be used in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the plant must be used in the factory for manufacturing. The specified word in the section is used in the site specified within the State for the manufacturing of goods. The use may be direct or indirect or aid in the manufacture. In the present case, a technical note was filed by the petitioner before the Tribunal, which clearly stated that the reverse osmosis plant was used for the purpose of treating and recycling the water which in turn is used for the manufacture of textiles. The customer is engaged in the manufacture of fabrics and having looms and other facility for dyeing the fabrics. The purpose of dyeing involves consumption of large quantity of water for the purpose of processing and production of steam using boiler. In the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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