2018 (4) TMI 1443

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nylon, at 4%, treating the item falling under Entry 51 in Part B of First Schedule to the Tamil Nadu General Sales Tax Act, 1959. 2. Short facts leading to the Tax Case Revision are that Tvl.V.D.Swami and Company Ltd., dealers in plastic raw materials, on the files of the Commercial Tax Officer, Mylapore Assessment Circle, had reported a total and taxable turnover of Rs. 3,37,15,257/- and Rs. 3,35,68,458/- respectively, for the assessment year 1999 - 2000, under the Tamil Nadu General Sales Tax Act, 1959. After check of accounts, the Assessing Officer levied tax at 11% on the turnover of Rs. 37,85,352/- on Nylon, based on the clarification No.40/2001, dated 27.01.2001 of Principal Secretary/Commissioner of Commercial Taxes and thereby, det....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cation letter of Principal Commissioner and Commissioner of Commercial Taxes as not correct. Hence, the letter of CIPET cannot be considered in favour of the appellants. The appellants has also relied on the letter dated 12.06.1993 of Society of Plastic Engineers, Bombay-19 which states that Nylon-6 known as Polymide-6 in the family of Nylons - Polymide is a thermo-plastic material and this is processed as plastic raw material by the plastic processing units. This material as thermo plastic behaves like Polyethylene, Poly Propylene, High Density Polyethylene. From the above it is clear that polymide is a thermo plastic material and not a plastic material. The letter further states that "B.I.S." has classified Nylon-6 as theremo plastic mate....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the department. Additive is different from raw material. The appellants though produced samples have not proved that the product manufactured out of polymide without any addition as plastic product only. Further the Authorised Representative has relied on the judgement of Supreme Court in the case of Paper Products Limited Vs. Commissioner of Central Excise reported in 112 ECT 765 and Commissioner of Sales Tax, Uttar Pradesh Vs. Paper Products reported in 122 STC 100. It has been held in the case of Paper Products by the Supreme Court that circular issued by C.B.E. &C are binding on the Departmental Authorities and they cannot take a contrary stand. In the case of Indra Industries, Supreme Court has held that Sales Tax Authority could not a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....se reported in (1999) 112 ELT 765, Om Plastics v. Deputy Commercial Tax Officer, Kangunagar Assessment Circle reported in 6 VST 100 and Tvl. Mohan Breweries and Distilleries Ltd., v. CTO, Porur Assessment Circle, Chennai and Others, reported in 139 STC 477, the Tribunal held that the clarification, dated 10.08.1993, which was issued based on reference from a registered dealer, even though it is executive in nature, the same is binding on the authorities, till the benefits given to the assessee, under the clarification were withdrawn and thus, the product polymide-Nylon 6 is a plastic raw material. Therefore, the Tribunal held that the said item would fall under Entry 51 in part B of first Schedule to the TNGST Act 59 and allowed the appeal ....