9911796707
TMI Blog2010 (7) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... sought clarification, invoking section 59 of the said Act, indicating that it is entitled to claim input tax set-off from April 1, 2005 on the purchase of the said inputs for growing the tea plants. Respondent No. 2 has passed the order on March 2, 2010 issuing the clarification to the effect that the deduction of tax paid on the purchase of the said inputs for growing the tea crop from the output tax payable on sale of manufactured commercial tea is not permissible under the provisions of the said Act. It is this order which is impugned in this petition. Sri D. Venkatesh, the learned counsel for the petitioner, submits that although tea cultivation is otherwise an agricultural activity, for the purposes of the said Act tea is not an agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submits that the said judgment was rendered in the context of the Central Sales Tax Act, 1956 (hereafter "the CST Act", for short). The said Central enactment did not contain any provisions akin to or corresponding to the provisions contained in section 2(3) and section 2(12), Explanation 4(a) of the said Act. Sri Venkatesh also strenuously contends that the provisions made in respect of coffee are not there in respect of tea. He submits that the petitioner also grows and manufactures commercial coffee, but it is seeking input-tax credit only in respect of tea in view of the special provisions totally excluding tea from the definition of "agricultural produce or horticultural produce". Per contra, Sri Shivayogiswamy, the learned Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds intended for use in manufacturing or processing of tea. Sri Shivayogiswamy further submits that the definition of the term "input" as contained in section 2(19) of the said Act is that any goods purchased by the dealer in the course of his business for re-sale or for use in the manufacturing or processing or packing or storing of other goods or any other use in business. The submissions of the learned counsel have received my anxious consideration. My perusal of the impugned order reveals that the second respondent has proceeded on the fallacy that the petitioner's tea growing is an agricultural activity. He has held that, as the fertilizers, chemicals, pesticides are not required for the business activity, the input-tax paid on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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