2001 (1) TMI 952 - AT - VAT and Sales Tax

Summary

Issues:
Dispute over tax assessment for the turnover of "Tapioca thippi flour" for the assessment year 1990-91 and the entitlement to exemption under G.O.P. No. 290/CTRE dated March 11, 1983.

Analysis:
The Appellate Tribunal heard a tax appeal case concerning the assessment order by the Joint Commissioner-III of Commercial Taxes, Chennai, regarding the turnover of "Tapioca thippi flour" for the assessment year 1990-91. The dispute revolved around whether the assessee was entitled to exemption under G.O.P. No. 290/CTRE dated March 11, 1983, which specifically related to the sale of "tapioca thippi" only. The Appellate Assistant Commissioner initially granted exemption based on the sample produced, stating that the assessee sold "tapioca thippi" in granule form, not "tapioca thippi flour." However, the Joint Commissioner, in the suo motu revision order, relied on the buyer's letter and goods receipt notes to assert that the assessee supplied only "tapioca thippi flour," overturning the Appellate Assistant Commissioner's decision.

In the subsequent appeal, the appellant's counsel argued that the assessee supplied "tapioca thippi" in granule form, not flour, citing a previous Special Tribunal decision. On the other hand, the Government Advocate supported the Joint Commissioner's stance that the exemption applied only to "tapioca thippi," not "tapioca thippi flour." The Tribunal carefully considered the contentions and records, emphasizing that the exemption notification should be strictly construed. They noted that "tapioca thippi" and "tapioca thippi flour" were distinct commercial commodities, as evidenced by the documents in the assessment file. Drawing on a Supreme Court precedent regarding different commercial commodities derived from the same source, the Tribunal upheld the Joint Commissioner's decision that the exemption did not extend to "tapioca thippi flour" supplied by the assessee.

Ultimately, the Tribunal dismissed the tax appeal case, affirming the Joint Commissioner's order. The decision emphasized the importance of interpreting exemption notifications strictly and concluded that the exemption under G.O.P. No. 290/CTRE dated March 11, 1983 did not cover the supply of "tapioca thippi flour." The order was to be observed and executed by all concerned, with the appeal being dismissed on January 4, 2001.