TaxTMI 
TaxTMI 
2015 (4) TMI 168
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....o-operative Milk Producers Union, otherwise called as Aavin, is engaged in the sale of milk and milk products, such as, butter and ghee. The issue in dispute relates to the assessment year 1998-99. The admitted facts, which are not in dispute, is that the assessee had sold its products for the assessment year in question under the brand name Aavin, which is registered under Trade and Mercandise Act, 1958. The assessee had paid tax at the rate of 10% in respect of butter and ghee sold under the brand name based on the Notification II(1)/CTRE/22/(a-2)/97 Gazette dated 05.03.1997, effective from 05.03.1997 G.O.Ms.No.73 dated 05.03.1997. The Assessing Officer made an assessment demanding tax at 11% on the sales turnover of Rs. 4,75,01,647....
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....ame was taxable at 11% as per Entry No.8 of Part-D of First Schedule to the TNGST Act, 1959. However, the rate of tax was reduced to 10% as per the above said notification w.e.f. 5.3.97. When it is so, the description of above entry was changed to Butter and Ghee sold under a brand name registered under the Trade and Merchandise Marks Act, 1959 w.e.f. 4.5.98 by G.O.Ms.No.139 CT & RE dated 4.5.96 (NotificationNo.II(1)/CTRE/49(a-2)/98 Gazette dated 4.5.98. As the Entry itself is changed in the Schedule, the notification which was issued for reduction of tax to 10% would lose its effect on introduction of new entry i.e., from 4.5.98 as per the above said notification. From the above, it is clear that the notification which reduced the ra....
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....and name registered under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958) Note:1. This entry is as per substituted First Schedule introduced by Act 37/96-Gazette dated 17-9-1996 w.e.f. 17-7-1996 (Retrospective) 2. Rate of tax reduced to 10% as per Notn.II(1)/CTRE/22(a-2)/97 - Gazette dated 5-3-1997 - Effect from 5-3-1997. 3. The expression "Butter and Ghee sold under a brand name registered under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958)" was substituted for the expression "Butter and Ghee sold under a brand name"by G.O.Ms.No.139, CT & RE dated 4-5-1998-Notn.No.II(1)/CTRE/49(a-2)98-Gazette dated 4-5-1998 - Act 21/98 - Gazette dated 18-6-1998 - w.e.f. 4-5-1998." 9. For better clarity, it is als....
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....ent from the Entry itself. Once the Entry shows that the rate of tax would be 10% in terms of the said notification dated 05.03.1997, even after 4.5.1998, the question of the Department demanding tax at the rate of 11% cannot be justified. The issue becomes more clear in view of the errata issued by the Department on 20.4.2001, which reads as follows: ERRATUM Sl.No.inD.Dis Acts Cell-II/22688/00 dated 20-4-2000 Name of the Commodity Clarification already issued on 20-04-2000 Erratum 4(ii) Butter sold under a brand name registered under Trade and Merchandise Marks Act 1958 11% under Entry 8 in Part -D of the First Schedule. However the tax was reduced to 10% by Notification II (1)/CTRE/22(a-2)/97, dated 05.03.97 11% under Entry 8 in Pa....