TaxTMI 
TaxTMI 
2018 (2) TMI 1223
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....pondent herein, are manufactures of Vanaspathi and Bakery Shortening and assessee, on the file of the Commercial Tax Officer, Ranipet Assessment Circle, under the Tamil Nadu General Sales Tax Act, 1959. Their accounts were originally finalized by the assessing authority for the total and taxable turnover of Rs. 2,20,329/- and Rs. 8,13,79,589/-, for the assessment years 2002-03 and 2003-04 respectively. Subsequently, it was found out that the assessee had claimed and availed concessional rate of tax, on the purchase of spares for machinery, against Form XVII, for the value of Rs. 3,34,220/- and Rs. 2,20,329/- for the respective assessment years. The assessing authority, therefore, revised the assessment by levying differential rate of tax at....
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.... hereunder: "4) Point No.(i): That the assessee were assessed to tax under the Tamilnadu General Sales Tax Act, 1959 for the assessment year 2002-2003 vide original assessment order dated 2.11.2005 and for the assessment year 2003-2004 vide the original assessment order dated 27.1.2005. In the said original assessment orders the assessing officer had allowed concessional rate of tax claimed by the assessee for the purchases under Section 3(5) of the Tamilnadu General Sales Tax Act, 1959 by issue of Form XVII declaration forms. Thereafter, the assessing officer had invoked Section 16 of the Tamilnadu General Sales Tax Act, 1959 and assessed the disputed turnover to a higher rate of tax holding that the purchase of spares se....
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....essing officer and reiterated by the revenue before the first appellate authority and before this Tribunal would show that, that clarification was issued in favour of one M/s Suriya Engineering, Dindigul and that dealer was not a manufacturer of any goods, but was only running an engineering works shop engaged in carrying out repairs and reconditioning work in old machineries on job work basis. Hence, for the purchase of spares by such a mechanical shop owner for being used in repairing and reconditioning of old machineries, it was clarified that concessional rate of tax under Section 3(5) against issue of Form XVII would not be available. It should be on the reasoning that carrying out repairs and reconditioning of old machineries would no....
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.... declarations and inturn there is no question of imposition of penalty under Section 23 read with Section 45(2)(e) of the Tamilnadu General Sales Tax Act, 1959 and this point is also answered against the appellant." 6. Aggrieved by the same, the Joint Commissioner (CT), Vellore Division, Vellore, has preferred the present Tax Case Revisions, on the following substantial questions of law:- "(i) Whether in the facts and circumstances of the case, the Tribunal is legally correct in having concluded that purchase of spares for use in old machineries would also to be covered by section 3(5) of the Tamil Nadu General Sales Tax Act, 1959. (ii) Whether the order of the Tribunal in having confirmed the order of the first lower a....
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.... (2), but subject to the provisions of sub-section (1), the tax payable by dealer in respect of sale of any of the goods mentioned in the Eighth Schedule to any other dealer for installation of, and use in, his factory site situate within the State for the manufacture of any goods shall be at the rate of three per cent on the turnover relating to such sale." 11. A reading of Section 3(5) of the Act makes it clear that the tax payable by a dealer in respect of sale of goods mentioned in the Eighth Schedule to any other dealer for installation and use in his factory site situate in the State for the manufacture of any goods shall be @ 3% on the turnover relating to such sales. In the present case, the respondent-dealer is a manufacturer, p....