2016 (9) TMI 561 - HC - VAT and Sales Tax

Sales Tax Waiver Scheme - amendment in eligibility certificate - is petitioner entitled to benefit of waiver scheme even after amendment in eligibility certificate - TNGST - Held that - the petitioner s Eligibility Certificate has been amended and the Eligibility Certificate has not been cancelled or declared as null and void by the respondents, who are Sales Tax Authorities. As long as the petitioner s Amended Eligibility Certificate, dated 28.08.2002, is valid and not been cancelled by the competent authority, the petitioner is entitled to the benefit of waiver scheme. Respondents have no jurisdiction to cancel such eligibility certificate - petitioner not liable to tax - petition allowed - decided in favor of petitioner.

Summary

Issues:
Challenge to assessment orders, Mandamus not to demand tax pending Tribunal application, Entitlement to waiver scheme benefit based on amended Eligibility Certificate validity.

Analysis:
In a series of writ petitions, the petitioner, a registered dealer under the Tamil Nadu General Sales Tax Act and Central Sales Tax Act, contested assessment orders and sought relief from tax demands pending a Tribunal application. The core legal issue revolved around the petitioner's eligibility for a sales tax waiver under an amended Eligibility Certificate granted by the Industries Department. The petitioner's unit, a refined oil manufacturer, faced challenges in procuring raw materials, leading to a request to amend the certificate to include additional products. The amended certificate allowed waiver on manufacturing edible oil from specific sources. Despite importing raw materials and manufacturing edible oil, a notice from tax authorities questioned the petitioner's entitlement to the waiver scheme. Previous court interventions directed the petitioner to present the amended certificate for consideration. The District Industries Center confirmed the petitioner's eligibility for waiver benefits, emphasizing adherence to prescribed conditions.

Subsequent petitions aimed to prevent advance tax demands on imported raw materials, which were disposed of with conditions. However, a later order by the Assessing Officer declared the amended certificate null and void, citing a previous court decision. The petitioner appealed this decision before the Sales Tax Special Tribunal, the outcome of which remained undisclosed. The critical legal question centered on the petitioner's entitlement to the waiver scheme based on the validity of the amended Eligibility Certificate. The High Court emphasized that as long as the amended certificate remained valid and unrevoked, the petitioner retained the right to the waiver benefits. In the absence of evidence showing cancellation or modification of the amended certificate by competent authorities, the court ruled in favor of the petitioner, quashing the impugned orders.

Conclusively, the High Court allowed specific writ petitions challenging assessment orders, emphasizing the petitioner's entitlement to the waiver scheme under the valid amended Eligibility Certificate. The court highlighted the lack of evidence supporting the cancellation or modification of the amended certificate by competent authorities, thereby affirming the petitioner's right to the waiver benefits. Another petition seeking a Mandamus was closed as unnecessary, with no costs imposed.