2018 (2) TMI 1298

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....Central Sales Tax Act, 1956, is a joint venture company engaged in the manufacture of automotive air conditioning systems such as compressors of different variables, heating ventilation air conditioning units (HVAC units), cooling units, evaporators, condensers, etc. The petitioner supplies automotive air conditioning systems for passenger cars, multi utility vehicles, sports utility vehicles, commercial vehicles and heavy duty trucks. The petitioner is the major supplier for several automobile manufacturers such as M/s.Maruthi Suzuki, M/s.Hindustan Motors, M/s.TATA, M/s.Mahindra, M/s.Honda, M/s.FIAT, M/s.General Motors, M/s.Ford and M/s.Eicher. 3. In these writ petitions, the petitioner has challenged the assessment orders for the years 2....

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....ent for the relevant years ought to have been done on or before 30.6.2012 and beyond the said date, it is barred by limitation. With regard to the rate of tax, the petitioner contended that the goods falling under Part C of the First Schedule of the State Act excluding the plant and machinery only were eligible for the concessional rate and were included in Item 67 of Part B to the First Schedule with effect from 23.3.2007 and that the petitioner sold only parts and this was not mentioned in the Government Order in G.O.Ms.No.79 Commercial Taxes and Registration (B2) dated 23.3.2007 to be ineligible items. 7. The petitioner further contended that they are eligible to make sale of the goods as per the provisions laid under Rule 6(3)(b) of th....

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....e respondent was justified in stating that the industrial input certificate produced by the petitioner has no value. 10. The respondent came to the conclusion that the goods are not exclusively used as industrial inputs or for the purpose of using as integral parts of refrigerating equipment or used along with the industrial inputs. To my mind, the only test as to whether it is an industrial input or not, is to refer to Rule 6(3)(b) of the said Rules. The said Rule reads as under : "Every registered dealer, who is a manufacturer or producer and purchases industrial inputs to use them in manufacture of taxable goods shall issue a certificate to the seller containing the details of his tax payer identification number, the details of goods ....

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....; 13. Though the petitioner has complied with Rule 6 of the said Rules, it has to be seen as to whether the respondent can ignore the same and take a stand that industrial input certificate produced is of no value. Considering the scheme of the said Act, the answer to this question should be in the negative i.e against the Revenue and in favour of the petitioner. Furthermore, Entry 67 of Part B to the First Schedule of the said Act states that the industrial inputs used in manufacture and for use in assembling, packing or labeling in connection with the manufacture inside the State are taxable at 4%. 14. Admittedly, the goods imported by the petitioner are inputs for the manufacture of car inside the State. Therefore, the appropriate class....