TMI Blog2020 (2) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... e State was not satisfied by the Assessee. HELD THAT:- Issue decided in the case of USR. TYRES AND TUBES PVT. LIMITED VERSUS COMMERCIAL TAX OFFICER, TIRUVERUMBUR ASSESSMENT CIRCLE, TRICHY [ 2011 (4) TMI 1245 - MADRAS HIGH COURT ], in which the learned Single Judge of this Court decided the issue with regard to G.O.Ms.No.528, CT RE dated 21.11.1997 where it was held that petitioners are entitled to exemption being an Export Oriented Unit. It is not necessary that the petitioners should involve in the sale of raw material to another Export Oriented Unit to claim the benefit of exemption. They are entitled to exemption at the last purchase, being the manufacturer. The other issue raised by the learned counsel for the petitioner has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.1997 was denied for the reason that the explanatory note attached to the said Notification issued by the State is not part of the Notification. Another issue of which the Assessee was denied the relief is on the ground that the export sale made by the Assessee of the fabric made out of the cotton purchased by it did not amount to a sale and therefore the condition of making a sale within the State was not satisfied by the Assessee. 2. The reasons assigned by the learned Tribunal in the impugned order are quoted below for ready reference. 4. We have considered the arguments of both the sides and also verified the connected records. The first item of dispute relates to the turnover assessed under Section 3(4) of the Act. It is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to be read in, nothing is to be implied. One can only look fairly at the languages used. The above observation has been quoted with approval by a Bench of Three Judges of the Supreme Court in Commissioner of Income Tax Vs. Ajax Products Limited (1965) 55 ITR 741 (SC). Obviously, the reason to levy purchase tax u/s.3(4) of the Act is simply, namely that if the manufactured goods out of raw materials obtained against concessional rate are disposed of outside the State otherwise than by way of interstate sale either in the form of branch transfer or consignment sale or export sale, the State does not get any revenue and only to augment the revenue, the State has imposed the purchase tax. In Section 3(4) of the Act, the expression &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1959 (Tamil Nadu Act of 1959), the Governor of Tamil Nadu hereby makes the following variation to the CT RE Notification No.II/(1)/CTRE/100/97 published at page 90 of Part-II Section 1 of the Tamil Nadu Government Gazette dated the 17th December 1997. VARIATION : In the said Notification for the expression Raw Materials , the expresssion 'Raw Materials, Packing Materials and Consumable Goods' shall be substituted. The Notification dated 17.12.97, clearly says that the exemption is available to a dealer who is effecting sales of raw material to 100% EOU and the notification dated 1.4.98, further extended this concession to sale of packing materials and consumable goods also. It could be therefore seen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to exemption uner G.O.Ms.No.528 CT RE dated 21.11.1997. The purport of the Government Order is that the petitioners being an 100% Export Oriented Unit, they are entitled to exemption, if they purchase raw materials for manufacture. 9. It is not disputed even by the respondent that the purchase was made for the manufacture. It is seen that the petitioners involved in the purchase of raw rubber for manufacturing activity. The petitioners are entitled to exemption being an Export Oriented Unit. It is not necessary that the petitioners should involve in the sale of raw material to another Export Oriented Unit to claim the benefit of exemption. They are entitled to exemption at the last purchase, being the manufacturer. Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terials purchased in the manufacture of such goods as provided under Section 3(3) by itself would make it unambiguous that such goods were within the State. When the stipulations to be satisfied as prescribed under Explanation 3 to Section 2(n) were fulfilled, certainly the export sale was also deemed to be a sale as defined under Section 2(n) of the Act for the purpose of the Act. The expression any other manner in Section 3(4) having been used following the expression for sale and applying the maxim ejusdem generis, it could only mean that any despatch to a place outside the State either by way of branch transfer or by transfer to an agent by whatever manner called, either for sale or for any other purpose, and it could not be attri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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