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Nokia Solutions and Networks India Private Limited Versus The Commissioner of Commercial Taxes, The Joint Commissioner of Commercial Taxes, LTU, Deputy Commissioner of Commercial Taxes-II (FAC) , LTU

Levy purchase tax under Section 12 of the TNVAT Act on the turnover of goods sold to the dealer located in a SEZ - contradiction with the provisions of Tamil Nadu Special Economic Zones (Special Provisions) Act, 2005 - Held that:- Admittedly, the notification granting exemption issued by the Government of Tamil Nadu vide G.O.Ms.No.75, dated 28.06.2005, continued to be in force on the date immediately before the commencement of the TNVAT Act and therefore, it shall continue to be in force. Unless .....

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ating 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 orde .....

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supplying Base Transmission Modules and its related IT Telecommunication equipment for use by various telecom service providers both within and outside India. The petitioner is a registered dealer on the file of the second respondent under the provisions of the TNVAT Act. For all the six years, which are subject matter of these Writ Petitions, the second respondent issued notices to the petitioners dated 31.08.2015, stating that they have purchased goods without payment of tax on the ground that .....

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he schedule appended to the TNVAT Act. It was further stated that the goods mentioned were purchased by the petitioner with payment of tax by virtue of being located in SEZ warrants levy of purchase tax under Section 12 of the TNVAT Act. Therefore, the respondent proposed to levy tax under Section 12(1)(a) of the TNVAT Act and granted an opportunity to the petitioner to file their objections. The petitioners submitted their reply, dated 13.10.2015, additional written statement dated 19.10.2015 a .....

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, reference has been made to the Tamil Nadu General Sales Tax Act, 1958, (TNGST Act), however, as per Section 87 of the TNVAT Act, any reference to TNGST Act is construed to be a reference to TNVAT Act and as per Section 12(1)(a) of the TNSEZ Act, there shall be no levy of tax under TNVAT Act on sale or purchase of goods, which are meant to carry on authorised operations. Therefore, it was contended that they are exempted from payment of tax under TNVAT Act on goods meant to carry on authorised .....

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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 .....

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r, the second respondent proceeded to make certain observations as regards the effect of the decision in the case of Torrent Energy Limited (supra). 4. These Writ Petitions were admitted and interim orders were granted and the respondents were directed to file counter affidavit. From the perusal of the counter affidavit, it is seen that the stand taken therein is by replicating the stand taken in the impugned order. When the matter was heard on the previous occasions, it was brought to the notic .....

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maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in an unit located in Madras Special Economic Zone, Tambaram, Chennai and other Special Economic Zones in the State of Tamil Nadu notified by the Government of India or for development, operation and maintenance of Special Economic Zone by the developer of the Special Economic Zone, if such registered dealer has been au .....

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ed in the light of the fact that the State of Tamil Nadu enacted a separate legislation 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 .....

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eard 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 exemption as far back as 28.06.2005, making an exemption in respect of sales tax, surcharge, resale tax and additional sales tax payable by any dealer on the sale of any goods made by such dealer to a registered dealer for the purpose .....

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countersigned by the SEZ authority and the goods purchased are used only for the above mentioned purpose. This amendment came to be notified in exercise of the powers under Section 17(1), as the Government had enacted the Tamil Nadu SEZ Act, Tamil Nadu Act 18 of 2005, which came into force on 08.08.2005. The only reason assigned by the respondent, Assessing Officer is by referring to Section 12(1)(a) of the TNSEZ Act, which reads as follows:- 12 (1) Subject to the provisions of sub-section (2), .....

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eant to carry on the authorised operations by the developer or entrepreneur. The respondent does not dispute the fact that the petitioner is a developer or an entrepreneur nor does it dispute the fact that the purchase of goods are meant to carry on authorised operations. The only reason based on which they seek to deny the benefit of exemption is by stating that after the repeal of TNGST Act unless the legislature had amended Section 12(1)(a) of the TNSEZ Act and substituted the words with TNVA .....

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de 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, priv .....

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s the case may be was in force notwithstanding the repeal of the said Act or 1970 Act as the case may be. 10. By virtue of Section 87 of the Act, wherever there is any reference to TNGST Act i.e., in any Act, Rule, Notification proceedings, order or other instrument made or issued under TNGST Act shall be construed as reference to TNVAT Act. In terms of the proviso under Section 88(1), the repeal of the TNGST Act, shall not affect the previous operation of the said Act, as the case may be or any .....

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