TMI Blog2021 (7) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of VSF and PFA Hank yarn has now been settled by a Hon'ble Division Bench of this Court in the case of M/S. AAKAVI SPINNING MILLS (P) LTD. VERSUS THE AUTHORITY FOR CLARIFICATION AND ADVANCE RULING REP. BY THE COMMISSIONER OF COMMERCIAL TAXES EZHILAGAM, CHEPAUK CHENNAI, THE ASSISTANT COMMISSIONER (CT) [ 2020 (2) TMI 370 - MADRAS HIGH COURT] , whereby, the Hon'ble Division Bench had hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .In the impugned notice in this Writ Petition, the department has proposed to assess sale of Viscose Staple Fibre (VSF) Hank Yarn, stating that the assessee has wrongly claimed exemption under Entry 44 of the Fourth Schedule to the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as 'TNVAT Act'). The aforesaid issue of exemption of VSF and PFA Hank yarn has now been settled by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form are equally entitled to exemption under Entry 44 and therefore, Handloom Industry stood encouraged by said exemption. Was there any intention of State to harm Powerloom Industry by denying exemption to other types of Yarn sold in Hank form. The answer is an emphatic 'No'. Therefore, we reiterate that firstly, there is no occasion to refer to the external aids like Finance Minister Spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... light of the above observations, the impugned notice, the proposal of levy of sales tax on VSF Hank Yarn, is hereby set aside. The Assessee is at liberty to give their reply to any other issue proposed in the impugned show cause notice, except the issue relating to Cotton Hank yarn, within 30 days from the date of receipt of a copy of this order. 5. The Writ Petition stands disposed of accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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