TaxTMI 
TaxTMI 
2026 (10) TMI 6
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....ment and T.C.No.91 of 2014 is filed by the assessee challenging common order of the Sales Tax Appellate Tribunal ('STAT'/'Tribunal') dated 15.04.2014 passed in respect of the periods 2002-03 and 2004-05. 2. The issue concerns eligibility of the assessee to concessional rate of tax in terms of Section 3(3) of the Tamil Nadu General Sales Tax Act, 1959 (in short 'Act'). The facts are not in dispute, in that, the petitioner is the purchaser of precision equipments, such as Vernier Calipers, Depth Gauge, Cylinder Gauge etc. from an importer in Kandla Port, and sold to manufacturers in the State of Tamil Nadu on production of Form XVII. 3. For the period 2004-05, Form XVII was admittedly not produced at the time of assessment but only duri....
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....ax Act, 1959? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the imported precision instruments are not fall either under Entry 9 of 11th Schedule or Part D and E of 1st Schedule to the Tamil Nadu General Sales Tax Act, 1959 since they are not specifically mentioned? 3. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in not considering the clarification No.101/04 issued subsequently in D.Dis.Acts Cell III/21336/2004 dated 8/4/2004 which is squarely applicable to the case? 5. T.C.Nos.15 of 2018 and 91 of 2014 relate to the period 2002-03 and 2004-05 respectively. The taxability of the goods would be governed by Entry 9 i....
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.... referred for clarification. (i) The commodity should be an item which has a specific mention in Part-D or E; in other words residuary items falling under entry 41 of part-B are not liable for tax at 20%. (ii) The commodity should be of a foreign make having clear foreign makings. (iii) The commodity should not be an item sold under a "Indian Brand Name" of "Trade Mark". (iv) It should not be an item, which had undergone any form of reprocessing, reassembling, reconstitution of repackaging in India. 9. We are not in agreement with the assessee or, for that matter the Commissioner. The reading by the Commissioner of this Entry appears to be that the rate of 20% would be confined only to those items that....
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....oods falling under Part A of the Third Schedule, goods falling under item 1 of the Sixth Schedule and arrack shall be at the rate of only three per cent on the turnover relating to such sale.' 14. The argument of Mr.I.Dinesh, learned Additional Government Pleader is to the effect that on a combined reading of Section 3(3) with Form XVII, it is clear that the goods purchased must be of the nature of consumables only, that are subsumed in the process of manufacture. For this purpose, he would draw our attention to the language in the Form that states 'for use by me/us as consumables/packing material/labels/component parts/raw materials/ processing materials of other goods which I/We will manufacture inside the State for sale'. Since the go....
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....Pvt. Ltd. [Foot Note Supra (4)] and Sree Murugan Engineering Products v. Commercial Tax Officer [Foot Note Supra (6)] we are of the considered view that the benefit under Section 3(3) is available in respect of 'any goods' as long as they are used in manufacture in Tamil Nadu. 17. Section 3(3) is an inclusive provision that extends the benefit of lower rate of tax to any goods, including consumables and excluding plant and machinery. As the subject goods fall neither within the ambit of plant and machinery or consumables, but have admittedly, been used in the manufacture of goods in Tamil Nadu, they would stand covered by the ambit of the phrase 'any goods'. 18. We draw support from the judgment of the Supreme Court in Phelps & Co.Pvt....