Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (6) TMI 1065

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ued a Government letter, dated 29.12.2006, to the first respondent stating that by virtue of Section 88(3)(i), the notification, granting exemption already issued under TNGST shall continue to be in force under TNVAT Act. - Benefit of exemption to be granted - Decided in favor of assessee. - W. P. Nos. 40283 to 40288 of 2015 - - - Dated:- 22-6-2016 - T. S. Sivagnanam, J. For the Petitioners : Mr. Aravind P. Datar Senior counsel for Mr. K. Magesh For the Respondents : Mr. V. Haribabu AGP ORDER In these Writ Petitions, the petitioner have challenged the assessment orders passed by the third respondent under the provisions of the Tamil Nadu Value Added Tax Act (TNVAT Act), for the assessment years 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, dated 30.10.2015. Since the issue involved in all these Writ Petitions are identical, they were heard together and with the consent on either side, are disposed of by this common order. 2. The petitioner is a private limited company incorporated under the Companies Act, 1956 in 2007 and engaged in the business of supplying Base Transmission Modules and its related IT Telecommunication equipment for use by various .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... operations. Further, it was pointed out that nowhere in the notice it is alleged, that the petitioner is not a developer/entrepreneur under TNSEZ Act engaged in authorised operations on the basis of letter of approval granted to it. Further, it was pointed out that there is no dispute that the goods purchased on which purchase tax is sought to be levied, were being used/consumed for any activity other than the authorised activities mentioned in the letter of approval. Reliance was also placed on the decision of the Gujarat High Court in the case of Torrent Energy Limited vs. State of Gujarat, reported in 2014 17 VST 582. Thus, by claiming exemption from payment of purchase tax, the petitioner also contended that the basis for computation is erroneous and prayed for dropping all further proceedings and an opportunity of personal hearing before taking any adverse decision. The respondent afforded an opportunity of personal hearing and rejected the petitioner's contention that Section 12(1) of the TNSEZ Act provide exemption from levy of tax on sale or purchase of goods under TNGST Act which enactment was repealed with effect from 01.01.2007 and thereafter, the levy of tax on th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ation for Special Economic Zones namely, TNSEZ Act, 2006. After the repeal of the TNGST Act and coming into force of the TNVAT Act, 2006, the Government passed an order with regard to the effect of the exemption notifications, which were issued, when TNGST Act was in force and by referring to Section 88 of the TNVAT Act, it was stated that notification granting exemption already issued under TNGST shall continue in force under the TNVAT Act. It appears that the Court adjourned the matter to enable the respondents to report as regards the effect of the said notification. However, there is nothing reported before this Court, when the matter was heard. 6. Be that as it may, it is contended that de hors the order passed by the Government, in terms of Section 87 read with Section 88 of the TNVAT Act, whatever exemptions, which were prevailing under the tax regime under the TNGST Act would continue. 7. I have heard Mr.Aravind P.Datar, learned Senior counsel for the petitioner, Mr.V.Haribabu, learned Additional Government Pleader appearing for the respondents and perused the materials placed on record. 8. As noticed above, the Government had issued a notification granting exempti .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed without taking note of Sections 87 and 88(1) of the TNVAT Act. The said provisions read as follows:- Section 87. Construction of reference to Tamil Nadu General Sales Tax Act:- Reference to Tamil Nadu General Sales Tax Act or Tamil Nadu Additional Sales Tax Act in any Act, or in any Rule, Notification, proceedings, order, or other instrument made or issued under that Act, shall be construed as reference to Tamil Nadu Value Added Tax Act. Section 88. Repeal and Saving:- (1) The Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) and the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970) (hereafter in this section referred to the said Act or 1970 Act ) are hereby repealed. Provided that such repeal shall not affect the previous operation of the said Act or 1970 Act, as the case may be, or any right, privilege, obligation or liability already acquired, accrued or incurred thereunder and subject thereto, anything done or any action taken including any appointment made, any notification, notice or order issued, any rule or regulation framed or forms prescribed and any certificate, licence or permit granted in exercise of any power confe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates