TaxTMI 
TaxTMI 
2014 (5) TMI 370
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....gal position that in availing of the benefits under a notification, the conditions stipulated therein should be scrupulously complied with? 3. Whether the order of the Tribunal is correct inasmuch there was no proof that the goods exported and the goods sold to the exporter by the assessee were one and the same?" 2. The assessee/respondent herein is a manufacturer and dealer in cotton yarn. The assessee is stated to have sold cotton yarn to M/s.Eastman exports, which is a registered exporter as per the Import and Export (Control) Act, 1947 by the Apparel Export Promotion Council. On the sale of cotton yarn effected to the registered exporter, admittedly, the said exporter had manufactured cloth and the same was exported. Placing reliance on notification No.197(a)/1970 dated 27th July, 1970, issued under Section 17 of the Tamil Nadu General Sales Tax Act, the assessee claimed exemption in respect of sale of cotton yarn to the registered exporter. Incidentally, it is an admitted fact that the assessee is enjoying the benefit of IFST waiver scheme. A perusal of the order of assessment, made on 31.3.1999, shows the assessee's status as a beneficiary of IFST wavier scheme and ....
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....the first Appellate Authority came to the conclusion that in the absence of any restrictive words in the notification that the export should be of cotton yarn alone, the assessee was entitled to the benefit of exemption under the notification. Thus, the first Appellate Authority granted the relief to the assessee to the extent of Rs. 13,33,47,882/- out of the disputed turnover of Rs. 31,01,67,662/-. Aggrieved by the said order, the Revenue went on appeal before the Sales Tax Appellate Tribunal. 7. The Tribunal shows agreed with the contention of the assessee and thereby confirmed the view of the Appellate Assistant Commissioner that when the purchaser of cotton yarn was a registered exporter and had been certified as so and had infact exported the goods, the assessee was entitled to the benefit of exemption under the notification. The Tribunal pointed out that it was no doubt true that there was no definition of the term 'registered exporter' in the notification granting exemption. Nevertheless, given the fact that the 'registered exporter' has been defined under the Import and Export (Control) Act by the Apparel Export Promotion Council sponsored by the Governme....
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....ribunal, learned Senior Counsel appearing for the assessee placed before us the evidence as regards the filing of the revised return before passing the final assessment order. He pointed out that even though the assessee was enjoying the benefit of IFST Waiver Scheme, yet, when the assessment order made no reference to the revised return filed and the documents regarding export, necessarily, the assessee has to file an appeal as a protective measure to clear the facts relating to the assessment of the assessee. He further pointed out that Section 9 proviso and the notification operated on different fields, proviso to Section 9 of the Tamil Nadu General Sales Tax Act exempts penalty made sale of goods exported "as such"; the notification issued prior to the introduction of the proviso, has a different purpose to achieve and is not concerned about export of the very same goods purchased. Thus, going by the plain words and the purport of the notification, the Tribunal rightly held that the assessee was entitled to exemption. 10. Heard learned Special Government Pleader appearing for the petitioner and the learned Senior Counsel appearing for the assessee and perused the materials p....
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....issioner. 13. In support of its claim based on the exemption notification, the assessee filed documents, which are already extracted in the preceding paragraph. The notification which granted exemption to the registered dealers on the sale of yarn to registered exporters, reads as follows: "Sales of cotton yarn by mills to registered exporters exemption from local and central sales Tax (Tamil Nadu) Notification No.197(a) of 1970 dated 27th July, 1970. In exercise of the powers conferred by sub-section (1) of section 17 of the Tamil Nadu General Sales Tax Act 1959 (Tamil Nadu Act 1 of 1959) the Governor of Tamil Nadu hereby makes the expemption in respect of the tax payable under the said act by the mills in Tamil Nadu. On the sales of cotton yarn manufactured by them to registered exporters, subject to the condition that the mills shall produce proof of export, before the final check of their accounts for the year concerned to the satisfaction of the assessing authority concerned". 14. A reading of the said notification shows that cotton yarn manufactured and sold to the registered exporter is granted exemption from payment of tax under the Tamil Nadu General Sales Tax ....