TMI Blog2019 (8) TMI 1699X X X X Extracts X X X X X X X X Extracts X X X X ..... h unregistered dealers as well, albeit in 2015. Having taken such a decision in principle, there is no rhyme or reason to restrict the benefit only from the date of substitution. Such restriction would discriminate against transactions under Section 8(2) for the prior period, apart from leading to a dichotomy in the manner in which transactions in terms of Section 8(2) pre and post 01.04.2015 are assessed to tax. Since the substitution in the present case only seeks to set right an anomaly it necessarily has to be effective from the date of inception of the Act itself, retrospectively - Petition allowed - decided in favor of petitioners. - W.P.(MD)Nos.15103 of 2015, 10801, 11425, 11426 to 11428, 12643 to 12646 of 2016, 16518 of 2017, 18191, 19698, 21104, 21105 of 2016, 21907 of 2016, 7819 to 7823 of 2015 and 2664 of 2017 - - - Dated:- 30-8-2019 - And WMP (MD) Nos.1 of 2015 (6 Nos.), 8741 to 8744, 15084,8388,9561 to 9564, 13120, 15083,15658, 9560 of 2016 and 13149 of 2017 30-08-2019 Honourable Dr.Justice Anita Sumanth For the Petitioner in the above W.Ps : Mr.B.Rooban For the Respondents in the above W.Ps : Mrs.J.Padmavathy Devi Special Government Pleade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10-11, W.P.(MD)No. 12643 of 2016 for the period 2011-12, W.P.(MD)No. 12644 of 2016 for the period 2007-08, W.P(MD) No.12645 of 2016 for the period 2008-09 W.P. (MD)No. 12646 of 2016 for the period 2010-11, W.P(MD)No 16518 of 2017 for the period 2013-14, W.P(MD)No. 18191 of 2016 for the period 2012-13, W.P. (MD)No.19698 of 2016 for the period 2014-15, W.P.(MD)No. 21104 of 2016 for the period 2014-15, W.P.(MD)No. 21105 of 2016 for the period 2013-14, W.P(MD)No.21907 of 2016 for the period 2013-14, W.P(MD)No.7819 of 2015 for the period 2008-2009, W.P.(MD)No. 7820 of 2015 for the period 2009-10, W.P.(MD)No.7821 of 2015 for the period 2010-11, W.P.(MD)No.7822 of 2015 for the period 2011-12, W.P.(MD)No.7823 of 2015 for the period 2012-13 and W.P(MD)No.2664 of 2017 for the period 2012-13, wherein the officer allows ITC only in respect of inter-State sales covered by C-Forms. 7. The claim of the assessee/petitioner was that with the substitution of sub clause (v) of Section 19(2), the benefit of ITC was available in respect of inter-State transactions whether covered by C-Form or not, in terms of both Section 8(1) and (2) of the CST Act. In short, the lis for consideration before me i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commerial Tax Officer, Chennai 600 108 (W.P.No.1383 of 2005 dated 30.08.2013). The Bench was concerned with an order of reassessment and the question that arose for consideration was whether the proceedings impugned were within limitation or not. The provisions of Section 16(1)(a) of the Tamilnadu General Sales Tax Act 1956 that dealt with the assessment of escaped turnover were noted. Section 16(1)(a) had been amended with effect from 01.07.2001 and prior to the amendment had provided for a limitation of 5 years from the expiry of the year to which tax related, for completion of proceedings. Post-amendment, the period of 5 years was to be computed from the date of final assessment by the Assessing Authority. The Bench concluded that statutory provisions as applicable and prevalent on the date of order of assessment should be applied in finalising the proceedings. Since the order of assessment had been passed on 11.12.2000, limitation was computed in line with the provisions of Section 16(1)(a), as it stood at that relevant point in time. (ii) Decision of a learned Single Judge in India Cycle Stores Vs. The Assistant Commisisoner (CT), Salem (Writ Petition No.32201 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the aforesaid proposition is not absolute and there are certain additional parameters that are to be taken into consideration to determine the effective date of the amendment in question. 14. The first indicator or cue as to whether the amendment is to operate prospectively or retrospectively can be found in the language used in the very amendment. Normally, if an amendment is intended to operate from or with effect from a particular date, the amending act indicates the same, alternatively stating that the amendment will come into force on such date as the State Government may, by notification, appoint. 15. In the present case, though there is no specific date stipulated in the amending act, the word used is 'substituted'. The Supreme Court in G overnment of India V. Indian Tobacco Association ((2005) 7 SCC 396) noted that 'substitution' ordinarily means 'to replace' or 'to put in place of another'. Though this means that the amended provision shall step into the space occupied by the provision that it seeks to amend, the question that arises is what the effective date for such substitution is. 16. Normally, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act provides the benefit of concessional rate of tax, upon production of a statutory Declaration form, to an interstate transaction with a registered dealer, and relating to specified goods. Section 8(2) stipulates that an interstate transaction with an unregistered dealer shall be visited with the same rate of tax as applicable to a domestic transaction involving identical goods. While Section 19(2)(v) extended input tax credit in respect of the transaction under Section 8(1), the same benefit was unavailable to the identical transaction with an unregistered dealer, taxable in terms of Section 8(2) of the CST Act. Though the benefit of ITC was initially restricted as an inducement to dealers to transact with registered dealers alone, Legislature has broadened, in its wisdom, the grant of benefit of ITC to transactions with unregistered dealers as well, albeit in 2015. Having taken such a decision in principle, there is no rhyme or reason to restrict the benefit only from the date of substitution. Such restriction would discriminate against transactions under Section 8(2) for the prior period, apart from leading to a dichotomy in the manner in which transactions in terms of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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