9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 142 - HC - VAT and Sales TaxClaim of benefit of exemption on supply of Ready-mix concrete to the developers of Special Economic Zone (SEZ) - authorized operations - Migration from sales tax regime to VAT regime - TNVAT Act, 2006 - Held that - Though the above notification came into force from 29.01.2016, by reading G.O.Ms.No.193, dated 30.12.2006 and Circular No.25 of 2014, dated 30.05.2014, it is clear that, in respect of these types of transactions, there is exemption provided by the Government. - Decided in favor of petitioner.
Issues:
1. Entitlement to exemption for supplying Ready-mix concrete to developers of Special Economic Zone (SEZ). Analysis: The petitioner, engaged in manufacturing Ready-mix concrete, sought exemption under a notification by the Government of Tamil Nadu for supplying goods to SEZ developers. The petitioner had earlier challenged assessment orders, alleging violation of natural justice, which were disposed of with directions for payment and fresh assessment. The petitioner claimed exemption under a specific Government Order for sales to a registered dealer setting up or operating in SEZs, supported by relevant documents and invoices. The Assessing Officer, referencing a court decision and a circular, denied zero rating the sales to SEZ developers, leading to the current Writ Petition. The court found the Assessing Officer's decision flawed as the petitioner's case was based on a specific exemption granted by the Government, not considered by the officer. The court highlighted subsequent circulars and notifications clarifying the exemption for works contracts with SEZ developers, emphasizing the exemption's validity even before a recent notification in 2016. Given the clear exemption provisions and the Assessing Officer's misdirection, the court set aside the assessment orders and remitted the matter for fresh consideration. The respondent was directed to reevaluate the assessment in line with the notifications and provide the petitioner with a personal hearing opportunity. Ultimately, all Writ Petitions were allowed without costs, bringing the case to a close.
|
