1979 (11) TMI 232 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of exemption provisions under the Tamil Nadu General Sales Tax Act, 1959.
2. Application of Government Orders to purchase turnover of gingelly seeds.
3. Scope of Tribunal's powers in extending the applicability of Government Orders.

Detailed Analysis:
1. The main issue in this case was the interpretation of the exemption provisions under the Tamil Nadu General Sales Tax Act, 1959. The respondent, a dealer in country chekku products, contended that she was exempt from tax on the purchase of gingerly seeds as she dealt in oil chekku products. The Tribunal allowed the exemption based on public welfare grounds, but the High Court found this reasoning erroneous. The High Court emphasized that it is not the Tribunal's duty to delve into the intention behind Government Orders or extend their scope beyond what is expressly stated.

2. The second issue involved the application of Government Orders to the purchase turnover of gingelly seeds. The Tribunal relied on Government Orders exempting sales of country oil chekku products to extend the exemption to the purchase of gingelly seeds. However, the High Court ruled that the Tribunal's interpretation was incorrect as there was no specific Government Order exempting the purchase turnover of gingelly seeds. The High Court held that the Tribunal had overstepped its powers by extending the applicability of the Government Order beyond its express terms.

3. The final issue addressed the scope of the Tribunal's powers in extending the applicability of Government Orders. The High Court unequivocally stated that it is not within the Tribunal's jurisdiction to interpret the intention behind Government Orders or expand their scope arbitrarily. The High Court emphasized that such actions would lead to arbitrariness and go against the legal system's principles. Consequently, the High Court allowed the tax revision case, set aside the Tribunal's order, and concluded that there would be no order as to costs.