TaxTMI 
TaxTMI 
2015 (11) TMI 1145
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.... of the Tamil Nadu General Sales Tax Act (for short 'the Act') read with Clause (3) of Eighth Schedule. 3. The assessee is a company engaged in the manufacture and dealing of tractor parts. The tractor parts manufactured for use as motor vehicle parts are sold to automobile manufacturers as well as to dealers in automobile spares. 4. The Assessing Officer assessed the purchase turnover of 'Air Drier' and Weighting Systems made against Form XVII Declaration @ 12% and demanded differential rate of tax of 9% by declining to grant the benefit of concession rate provided under Section 3 (5) of the Act and ignoring Form XVII Declaration. Against the said order of the assessing officer, the assessee/appellant went on appeal t....
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....below :- "The Assessing Officer assessed the purchase turnover of "Air Drier" and Weighting Systems made against Form XVII @ 3% and levied difference rate of tax of 9% (12-3%). The Appellate Assistant Commissioner (CT) held that Air Drier is increase room temperature in the process of manufacture of their parts and lessee allowed. But, the air drier is not a raw material component to go in the manufacture their parts. It is only an instrument to control the temperature of factory room just like any other Air Conditioner, etc. Point for consideration : (1) Whether the order of the Appellate Assistant Commissioner (CT) is sustainable or not? Heard both sides. Records perused. The Authorized Represe....
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....To buttress this argument, Mr.Dominic Savio Joseph, learned counsel for the appellant relied upon Section 3 (5) of the Act to state that air drier, viz., the goods in question, was installed in the factory of the appellant, for the manufacture of goods and the list of capital goods set out in the certificate of registration is set out in Form B and the same contains the following particulars :- "16 (c) Capital Goods : Transformer, OCB, VCB, Cables, Panels, Light Fittings, Copper & G Wire, MCCB, ACD Contractors, Motor, Starters, Energy Meeter Compressor, Air Drier, Pipes and Fittings ........" It is further submitted by the learned counsel for the appellant that since the said goods form part of Form B, based on which Form XVII d....
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....in the State for the manufacture of any goods shall be at the rate of three per cent on the turnover relating to such sale." 10. As seen from the documents available on record, when the original authority and the appellate authority accepts that those air driers are installed in the factory site situate in the State for the manufacture of any goods, it only means that the goods in question should be installed in the factory site in the course of manufacture of any goods. There is no intentment of actual use of the goods in the manufacture. The words "installation of in his factory" or "use in his factory" cannot be misread as to be used as inputs in the manufacture of goods. They are machinery used by the factory at site for manufacture ....