2003 (12) TMI 591

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....the Respondent : Mr. T. Ayyasamy, Spl. G. P. (Taxes) JUDGMENT (Delivered by R. Jayasimha Babu, J.) It is undisputed that the assessee is entitled to deferral of sales tax liability in respect of the units set up by it at Alathiyur, Perambalur District. An agreement dated 3.9.98 has been entered into between the petitioner company and the State in this regard. 2. It is not in dispute th....

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....es volume is clearly required to be deferred along with other taxes referred to in the agreement. 5. The agreement in Clause (1) (b) provides thus:- "The company has to go on paying the tax to the level of base volume of production/sales and once it reaches this level, then any further tax liability will be eligible for deferral of sales tax." 6. The additional sales tax is payable at rat....

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....teriality so far as the right of the petitioner to secure deferral in terms of the agreement is concerned. The agreement does not state that the petitioner has to wait till the year end so as to claim the right to have it's further tax liability deferred, even though it had reached the base volume much before the end of the year. 8. The liability which the petitioner incurred by way of having t....

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....sales but also the sales effected thereafter. If the additional sales had not been effected by reason of the additional capacity having been installed, it is very likely that the total sales for the year would have been very much less than Rs.300 crores. The additional liability which is incurred by way of having to pay additional sales tax at a higher rate was a consequence of the additional sale....