2020 (2) TMI 1190

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....llate Tribunal (Additional Bench), Coimbatore on 12.09.2005, dismissing the appeal of the Assessee, which is a 100% Export Oriented Unit (EOU). By the impugned order, the Assessee's claim of availing the benefit of concessional rate of tax on the raw materials viz., cotton purchased by it in the declaration in Form No.17 under the Notification in G.O.No.528 dated 21.11.1997 was denied for the reason that the explanatory note attached to the said Notification issued by the State is not part of the Notification. Another issue of which the Assessee was denied the relief is on the ground that the export sale made by the Assessee of the fabric made out of the cotton purchased by it did not amount to a sale and therefore the condition of maki....

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....to add words to the provisions of the Act. In this connection, it is relevant to quote the classic observations of Rewlatt, J. in Capt.Brandy Syndicate Vs. Commissioner of Inland Revenue (1921) 1 KB 64 at Page 71: "In a taxing statute one has to look merely look at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is to be read in, nothing is to be implied. One can only look fairly at the languages used." The above observation has been quoted with approval by a Bench of Three Judges of the Supreme Court in Commissioner of Income Tax Vs. Ajax Products Limited (1965) 55 ITR 741 (SC). Obviously, the reason to levy purchase tax u/s.3(4) of the Act is simply, namely that i....

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....of 1959) the Governor of Tamil Nadu hereby makes an exemption in respect of the tax payable by any dealer on the sale of raw materials to the registered 100% Export Oriented Units in this State and units located in the Chennai Processing Zone." Notification No.II(1)/CTRE/100/97 dated 17.12.97: In exercise of the powers conferred by Sub-Section(3) of Section 17 of the TNGST Act, 1959 (Tamil Nadu Act of 1959), the Governor of Tamil Nadu hereby makes the following variation to the CT & RE Notification No.II/(1)/CTRE/100/97 published at page 90 of Part-II Section 1 of the Tamil Nadu Government Gazette dated the 17th December 1997. VARIATION : In the said Notification for the expression "Raw Materials", the ex....

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....d Tubes Pvt.Ltd., -Vs- The Commercial Tax Officer, Trichy" decided on 05.04.2011 in W.P.No.1397 of 2008, in which the learned Single Judge of this Court decided the issue with regard to G.O.Ms.No.528, CT & RE dated 21.11.1997 in the following manner. "8. According to the respondent, since the petitioners do not effect the sale of raw rubber to 100% Export Oriented Unit, they are not entitled to exemption uner G.O.Ms.No.528 CT&RE dated 21.11.1997. The purport of the Government Order is that the petitioners being an 100% Export Oriented Unit, they are entitled to exemption, if they purchase raw materials for manufacture. 9. It is not disputed even by the respondent that the purchase was made for the manufacture. It is seen t....

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....o levy any tax on export sale, the indirect creation of any tax liability on such "export sales" on the inputs puchased could not at all be countenanced. Further, the export sale was fully covered by the definition of "sale" under Section 2(n) read along with Explanation 3(a). It could never be disputed that the goods manufactured by availing of the concessional rate of tax in respect of those materials purchased in the manufacture of such goods as provided under Section 3(3) by itself would make it unambiguous that such goods were within the State. When the stipulations to be satisfied as prescribed under Explanation 3 to Section 2(n) were fulfilled, certainly the export sale was also deemed to be a "sale" as defined under Section 2(n) of ....