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2015 (7) TMI 503 - MADRAS HIGH COURT

2015 (7) TMI 503 - MADRAS HIGH COURT - TMI - Rate of value added tax - 5% or 14.5% on Liquid Petroleum Gas (LPG) and Lubricants (Lubes) - Industrial Inputs or not - Held that:- It has been consistently contended by the petitioner that they have inadvertently entered the commodity code and that they have actually collected only @ 5% from their customers and there was no time limit prescribed under Rule 6(3)(b) of TNVAT Rules for filing the certificates and it should be every month. Since there is .....

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BR> Accordingly, the petitioner is directed to file the documents afresh by quoting correct code of commodity by furnishing all the certificates required under Rule 6(3)(b) of the TNVAT Rules, 2007, subject to the condition that the petitioner shall deposit 10% of the admitted tax liability, within a period of four weeks from the date of receipt of a copy of this order - Decided partly in favor of assessee. - Writ Petition No. 33705 of 2014 And M. P. No. 1 of 2015 - Dated:- 11-6-2015 - S. Vaidy .....

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es) within the state as well as outside of the state i.e., interstate sales falling under Commodity Code '2067-Industrial inputs' of Part B of Schedule-I liable to tax at 5% and also under Commodity Code '301'- Any other goods, not specified in any of the schedules' Part C of Schedule-I liable to tax @ 14.50%, when sold to non-industrial consumers i.e., otherwise than by way of Industrial Inputs . The petitioner is a registered dealer under Tamil Nadu Value Added Tax Act, 200 .....

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o. as 301 which is taxable at 14.50% as per entry 69 of the Part C of the First Schedule and that for the months of April and May '2014, though the dealer had mentioned Commodity Code as 2067 for the sales effected at 5%, the dealer has not filed certificate as required under Rule 6(3)(b) of the TNVAT Rules 2007. Apart from this, the respondent has also proposed to levy penal interest in terms of Section 42(3) of TNVAT Act 2006. Hence, the respondent called for objections from the petitioner .....

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67 which covers industrial inputs under Entry 67 of Part B of the First Schedule of TNVAT Act. It is stated that it is only a typographical error and infact they had collected taxes only at the rate of 5% from their customers and filed returns disclosing the rate of tax at the rate of 5%. As regards enclosure of certificate required under Rule 6(3)(b) of the Tamil Nadu Value Added Tax Rules, 2007 (in short, TNVAT Rules, 2007), the petitioner has stated that it is not mandatory to enclose every m .....

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t notice was issued to the petitioner, dated 24.10.2014, proposing to levy higher rate of tax at 14.5% for the sales turnover of ₹ 111,21,85,828/- for the period from April 2014 to September, 2014 inasmuch as, the petitioner had failed to produce the Certificate required under Rule 6(3)(b) of the TNVAT Rules, 2007 in their monthly returns. It was also proposed to levy penal interest under Section 42(3) of TNVAT Act, 2006 and thereby, objections were called for from the petitioner. Pursuant .....

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rs paying tax under Section 7(D)(b), it is taxable at 12.5% and if sold to hoteliers paying tax under Section 7(i)(a) of the TNVAT Act, 2006 and to manufacturing industries, is taxable at 4% as it could be considered as industrial input for which certificate from the customer under Rule 6(3)(b) of the TNVAT Rules is required, failing which, it is liable to tax at 12.% under Part C of I Schedule to the TNVAT Act, 2006. 9. Therefore, in order to claim concessional rate of tax at 4% as industrial i .....

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as 301, meant to cover items falling under residuary entry, viz., Entry 69 of Part C of the First Schedule to TNVAT Act, instead of code 2067 which covers industrial inputs under Entry Part B and mere entering a wrong commodity code, the petitioner cannot be stopped from claiming the correct rate of tax nor the authority usurp jurisdiction to levy higher rate of tax. He contended that in fact, the petitioner had collected taxes only at the rate of 5% from its customers and filed its returns disc .....

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o the Clarification made under Circular, dated 1.8.2007 cited supra, which is binding upon the authority and therefore, the same cannot be sustained. 11. A perusal of the impugned proceedings, it is revealed that the respondent has considered the objections raised by the petitioner and rejected, stating that inadvertent selection of commodity or typographical error, said to have been occurred in filing of the returns by the petitioner, deserves no consideration since, the petitioner must have ba .....

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