2006 (9) TMI 491

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....ties. 2. The facts giving rise to the present batch of cases are as follows:- The question relates to levy of tax under the Tamil Nadu General Sales Tax Act in relation to the sale of rice. Rice was exempted from payment of tax upto 26.03.2002 under the relevant notifications under the Tamil Nadu General Sales Tax Act. However, with effect from 27.03.2002 rice was no longer considered as an exempted item and by virtue of a separate notification, tax was leviable at the rate of 2%. Sub position continued till 27.10.2002 and on 28.10.2002, a separate notification was issued making rice as an exempted item and such position is continuing till date. 3. The question relates to assessment and payment for tax in the aforesaid period of ab....

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....eh Assessing Officers to complete the assessment and simultaneously send proposal for waiver, no penalty should have been imposed, particularly when the assessment was made on the basis of the returns filed and on best judgment. 6. The learned counsel for the petitioners have also invited our attention to paragraphs 6 and 11 of the counter affidavit filed on behalf of the respondents in one of the writ petitions, W.P.No.3188 of 2004, and those two paragraphs are extracted hereunder :- "6. Though the demands were raised, waiver proposals were submitted and thus the demand becomes not enforceable. ... 11. With regard to the averments in paras 10 and 11, it is submitted that as stated on the previous paras, though the demands under....