Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (3) TMI 1002 - HC - VAT and Sales Tax
Issues involved: Quashing of assessment order based on exemption under section 8 of the Third Schedule to the Tamil Nadu General Sales Tax Act and Central Sales Tax Act.
Summary: The petitioner sought to quash the assessment order dated February 24, 2004, claiming exemption under section 8 of the Third Schedule to the Tamil Nadu General Sales Tax Act. The petitioner argued that being a general exemption, they are entitled to exemption from tax as per section 8(2A) of the Central Sales Tax Act. Despite the availability of an alternative remedy, the court proceeded to pass an order on the merits due to the long pendency of the writ petition. The court analyzed the exemption granted under section 8 of the Central Sales Tax Act in the Third Schedule to the Tamil Nadu General Sales Tax Act. It noted that exemptions in unqualified terms operate as general exemptions, allowing the assessee to enjoy exemption from tax under section 8(2A) of the Central Sales Tax Act. The Supreme Court's interpretation of section 8(2A) clarified that exemptions must be "generally" applicable under the state's sales tax law for Central sales tax exemption to apply. The Explanation to section 8(2A) of the Central Sales Tax Act defines "generally exempt" goods, emphasizing that exemptions with specified conditions or circumstances do not qualify as general exemptions. In this case, the court found that the exemption for "aluminium domestic utensils not operated by pressure or electricity" did not constitute a general exemption, as it was subject to specific conditions. Therefore, the petitioner was not entitled to exemption for the transactions in question based on the Explanation to section 8(2A) of the Central Sales Tax Act. Ultimately, the court dismissed the writ petition, ruling that the petitioner was not eligible for the exemption.
|