Petitioners granted 30 days to present case for tax exemption on footwear sales below Rs. 100

The court allowed the petitioners, registered under the Companies Act, to present their case within a 30-day period for the respondent to make decisions on tax exemption eligibility for sales of footwear below Rs. 100 under the TN General Sales Tax Act and the Central Sales Tax Act. The court directed the respondent to address the representations promptly, disposing of the writ petitions without costs.

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Issues:
1. Tax exemption on sales of footwear below Rs. 100 under TN General Sales Tax Act.
2. Discrepancy in exemption eligibility for inter-State sales under Central Sales Tax Act.
3. Lack of opportunity for representation before passing orders.

Analysis:
1. The petitioners, registered under the Companies Act, 1956, claimed tax exemption for sales of footwear below Rs. 100 under the TN General Sales Tax Act. The exemption was granted in the assessment order for the year 2005-06. However, a subsequent notice imposed conditions for exemption eligibility based on the MRP value, leading to confusion regarding the exemption criteria.

2. The issue arose regarding the eligibility of inter-State sales for tax exemption under the Central Sales Tax Act. The respondent initially granted exemption for inter-State sales of footwear below Rs. 100, subject to producing "C" forms. Subsequently, a notice clarified the exemption criteria based on MRP values, resulting in a change in the tax rates applicable to the petitioners' inter-State sales.

3. The main contention raised was the lack of sufficient opportunity for the petitioners to represent their case before the impugned orders were passed. The learned counsel for the petitioners argued that proper opportunity for representation was not provided, leading to the filing of writ petitions challenging the orders issued by the respondent.

In response to the submissions, the learned Special Government Pleader (Tax) agreed to grant the petitioner-company a 30-day period to make representations before the respondent. It was assured that no action would be taken against the petitioner-company until final orders were passed based on the representations. The court allowed the petitioners to present their case within the stipulated time for the respondent to make appropriate decisions in accordance with the law. Consequently, the writ petitions were disposed of without costs, with directions for the respondent to address the representations within a reasonable timeframe.

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