Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
CGST - Acts + GST Rates GST Ntf. GST Forms GST - Manual GST - FAQ State GST Acts SGST Ntf. I. Tax Manual
Extracts
Home List
← Previous Next →

M/s. IND 237, Manamadurai Steel & Furniture Makers Industrial Coop. Society Ltd. Versus The Joint Commissioner-III (SMR) , Office of the Commissioner of Commercial Taxes, Chennai, The Appellate Assistant Commissioner (CT) , The Commercial Tax Officer

Exemption in terms of Notification issued under Section 17 of the Act - The claim for exemption was rejected by the Assessing Officer on the ground that the society was not authorized to effect sales of E.B. line materials and RTS grills to the Tamil Nadu Electricity Board - levy of penalty u/s 12(3)(b) of the Act - whether the appellant, a cooperative society engaged in industrial activity, is entitled to claim exemption on the product sold by it to the Tamil Nadu Electricity Board? - Held that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Industries Board specifically certified that the society, which is a unit of the Board, is authorized to purchase finished goods from the members of the society and sell the same for the benefit of its members. This aspect of the matter was not considered by the Joint Commissioner while passing the impugned order. - Merely because the product supplied by the society, which is being utilized by the Electricity Board for the purpose of supporting high voltage electrical cables, cannot make the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the appellant society to the Tamil Nadu Electricity Board, are essentially blacksmithy products and are entitled for exemption in terms of the Notification issued under Section 17 of the Act - appeal allowed - decided in favor of appellant. - Tax Case (MD) No. 76 of 2009 - Dated:- 2-6-2017 - T. S. Sivagnanam And P. Velmurugan, JJ. For Appellant : Mr. S. Karunakar For Respondents : R. Karthikeyan, AGP JUDGMENT T. S. Sivagnanam, J. This tax case has been filed by an industrial cooperative soci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as the Act). 3. The facts leading to the filing of this case could be summarized as follows : For the assessment year 1994-95, the appellant reported a total and taxable turnover of ₹ 1,60,11,357/- and NIL respectively. They claimed exemption in terms of G.O.Ms.No.272 Revenue Department dated 11.2.1967 and the proceedings of the Khadi and Village Industries Board in B.P.No.70 dated 13.3.1969. The claim for exemption was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lty, the objection raised by the appellant was that their society falls within the jurisdiction of the Khadi and Village Industries Commission in accordance with Sections 2(h) and 3(1) of the Khadi and Village Industries Commission Act, 1956 and blacksmithy is one of the items, which falls within the Schedule under the said provisions and the products supplied to the Electricity Board are blacksmithy items and that therefore, the society is entitled for exemption. 5. Aggrieved by the order of as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not be set aside and the order passed by the Assessing Officer be restored. The reason assigned in the show cause notice was that G.O.Ms.No.3131 Revenue Department dated 26.10.1963 was relied upon by the Appellate Assistant Commissioner wherein the Government granted exemption for Madras State Khadi and Village Industries Board and the units attached to it in respect of their sales of all goods produced by the Board and its units and that the appellant assessee had purchased finished goods and s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssed by the Assessing Officer. Aggrieved by the same, the appellant society has filed this case. 7. The questions of law, which arise for consideration in this appeal, are as follows : (i) Whether on the facts and in the circumstances of the case, the Joint Commissioner was right in restoring the levy of sales tax at 8% on the sales of RTS grills to an extent of ₹ 35,99,444/- ? (ii) Whether on the facts and in the circumstances of the case, the Joint Commissioner was right in modifying the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Taxes) for the respondent Department and carefully perused the materials placed on record. 9. As noticed above, the Assessing Officer had determined the total and taxable turnover and levied penalty under Section 12(3)(b) of the Act. Before we proceed to consider the question as to whether the appellant was entitled for the benefit of exemption, we first propose to consider as to whether the Assessing Officer was justified in levying penalty. 10. Admittedly, the entire turnover has been culled o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Vs. CTO (Fac.) [reported in (2002) 125 STC 505]. Therefore, question No.2 is answered in favour of the appellant and against the Revenue. 12. Question Nos.1 and 3 are interlinked in the sense that we have to decide as to whether the appellant, a cooperative society engaged in industrial activity, is entitled to claim exemption on the product sold by it to the Tamil Nadu Electricity Board. The undisputed facts are that the appellant industry is registered under the Tamil Nadu Khadi and Village In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng agency and does not have any power over the administrative matters of the society registered by the Tamil Nadu Khadi and Village Industries Board. It was further stated that the Tamil Nadu Khadi and Village Industries Board is a statutory body of the Government of Tamil Nadu, administered by an Executive Officer by virtue of the powers conferred on him under Section 89(1)(i) of the Tamil Nadu Cooperative Societies Act, 1983 and he is the ex officio Registrar of the Khadi Board Cooperative Soc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt Commissioner while allowing the appeal and reversing the order passed by the Assessing Officer as to how they are entitled for exemption and the products, which were sold by the society to the Tamil Nadu Electricity Board, are blacksmithy items and the observation of the Assessing Officer that it involves painting and welding is of no consequence as essentially the product is developed by blacksmithy. Apart from that, the appellant also relied upon the letter given by the Khadi and Village In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is without appreciating the fact that the appellant is a cooperative society, registered under the provisions of the Tamil Nadu Cooperative Societies Act and the society has been established for the welfare of its members. In other words, if the society is an agricultural cooperative society, the members would be agriculturists, who would market their produce through their society. the appellant society is an industrial cooperative society registered for manufacture of steel as well as furnitur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r products. The Notification issued under Section 17 exempts sale of all products of village industries, which would mean that products made of iron, which is essentially a blacksmithy item, would also be entitled for the benefit of exemption. If such is the exemption Notification, which does not qualify the product to cover the sale of products of village industries, the appellant society would be entitled for the benefit of exemption. 17. The Assessing Officer rejected the claim for exemption .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s 'subject to condition that they shall deal only in products of village industries specified in schedule to the Central Act 61 of 1956' have been omitted with effect from 06.10.1982 and held that the manufacture and supply of items to the Tamil Nadu Electricity Board are blacksmithy items and eligible for exemption. 18. Further, it is not in dispute that the appellant is one of the institutions certified by the Khadi and Village Industries Board and this stand has been reiterated by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version