2014 (2) TMI 669

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.... 2. It is seen from the order of the Tribunal that as against the cancellation of levy of penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, the State preferred an appeal before the Sales Tax Appellate Tribunal. The assessee also filed a Cross Appeal in respect of its plea for exemption under Section 4E of the Act. Placing reliance on the notification issued by the Government under Section 17 of the Tamil Nadu General Sales Tax Act in Notification No. 528 dated 21.11.1997, the assessee submitted that the tax payable on the purchase of raw materials qualified for exemption and hence, the question of tax or penalty in the case on hand did not arise. Even though the Tribunal considered the claim of the assessee as regards....

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....rchase of raw materials by it. Thus, as against refund or reimbursement on the tax paid on the purchase of any goods including consumables contained under Section 4E of the Act, the notification issued under Section 17(1) of the Tamil Nadu General Sales Tax Act, granted exemption from payment of sales tax, on all raw materials sold to the registered 100% Export Oriented Units in the State and units located in the Chennai Export Processing Zone. 5. The assessee herein purchased cotton which is taxable at point of last purchase. Since the assessee had not reported the turnover relating to the purchase of cotton, even though disclosed in the books of account, the Assessing Officer passed an order of assessment disallowing the claim of exemp....

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.... exemption based on Notification No.528 dated 21.11.1987, passing of an order on the penalty appeal preferred by the State thereby restoring penalty would be totally illegal and hence, cannot be sustained at all. In the circumstances, with no decision rendered on the claim of exemption, the proper course herein would be to set aside the order of the Tribunal and remand the matter back to the Tribunal for de novo consideration of the levy of penalty along with the claim of the assessee in the Cross Appeal. 8. Accordingly, along with the assessee's Cross Objection on the assessability of the turnover pertaining to the last purchase cotton, the Tribunal shall consider the Revenue's appeal and pass order in both the appeals in accordance wit....