TaxTMI 
TaxTMI 
2015 (5) TMI 496
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.... these writ petitions, challenging the orders of assessment dated 12.03.2014 and 13.03.2013 respectively for the assessment years 2006-2007 to 2011-2012. 4. The short ground on which the impugned orders have been challenged is by contending that the goods manufactured by the petitioner, namely, Air Compressors being capital goods were entitled to concessional rate of tax at 4%. The Assessing Officer, while granting the said concessional rate of tax, denied the same in respect of the sale effected by the petitioner through its distributors, which is according to the petitioner is erroneous, since the goods are continued to be used as capital goods by the end user. The petitioner would further state that it had produced the records before th....
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....te of tax. 7. The Advanced Ruling Authority, after considering the matter passed an order on 10.07.2014. The operative portion of the order reads as under: "6.2.....The intention of having Entry 25 of Part-B of First Schedule tot he Act is to provide the concession regarding rate of tax for the goods bearing eligibility to be the capital goods for manufacturing industry. Therefore, the industry specific machineries, the spare parts, components and accessories of such machineries having ultimate use only in industry either for installation as a wholesome machinery or for the post-installation maintenance and repairs, on supply to the industrial manufacturers of other goods, either directly by manufacturers of such machineries or such spare....
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....tion 2(11) of the TNVAT Act, 2006. In the light of the subsequent development, this Court is of the view that the Assessing Officer should take note of the clarification issued by the Advanced Ruling Authority. So far as the rate of tax is concerned, the order of the Advanced Ruling Authority dated 24.06.2014 would be prima facie applicable. Insofar as whether higher rate of tax could be levied, merely because machinery, spares, parts components are supplied through their distributors or dealers, whether it would attract higher rate of tax were considered by the Advanced Ruling Authority in its order dated 10.07.2014. But the legal principles could very well be applied to the case of the petitioner, since part of the sales were effected thr....