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TMI Blog1992 (3) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... through their office at Madras, Coimbatore and Salem after payment of sales tax or tax-suffered raw materials, and transferred it to their unit at Bangalore and delivered to M/s. Andhra Steel Corporation Ltd., having mini-steel plant at Bangalore for conversion into M.S. billets and ingots and return to the petitioner's unit at Bangalore and converted by the petitioners into tor steel, M.S. rounds and M.S. coil, etc., and transferred them back to the office at Madras and sold the same within the State. On such claims and assumptions, the petitioners claimed that they are entitled to exemption under various Government orders, referred to in the affidavit. It is stated by the petitioner that the notifications referred to therein are related for the period from January 19, 1976 to March 31, 1982 and April 1, 1982 to March 17, 1986 and in the light of the said notifications, the petitioners are entitled to waiver and exemption in respect of the tax payable on the endproducts of iron and steel falling within the scope of item 4 of the Second Schedule on condition that the raw materials specified in item 4 of the Second Schedule have suffered tax under the Tamil Nadu General Sales Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber 23, 1987 only directed the authorities to consider the claim of the petitioner in the light of the Division Bench judgment of this Court in Bhoruka Steel Limited case [1989] 10 SISTC 19, and remanded the matter for such fresh consideration, and that unless the petitioner satisfies the conditions prescribed subject to which the exemption has been granted in the Government order dated March 17, 1986 they are not entitled to the exemption or for the relief prayed for. It is contended that the steel re-rolling mills in Tamil Nadu have to certify the purchase effected within Tamil Nadu of raw materials falling under item 4 of the Second Schedule for manufacturing of end-products and it is only on such proper certification and sufficient proofs that the exemption claimed by the petitioner can be countenanced. 5. The respondent also contends that there is no provision for certifying the purchases in question by the third respondent, that the practice said to have been followed by the petitioner was on their own account not authorised or permitted in law and the mere fact that they got the seals of the third respondent affixed to the copies of declaration in form D cannot justify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the two Government orders dated January 24, 1982 and March 13, 1982 referred to above shall be available irrespective of the fact whether the end-products were manufactured by the steel rolling mills in Tamil Nadu or whether the steel rolling mills were situate outside Tamil Nadu, provided they were manufactured out of the raw materials which had already suffered tax under the Tamil Nadu General Sales Tax Act, 1959. The factum of such payment under the local Act was specifically noticed at para 6 of the said decision. It is to be noticed that the declaration by the Division Bench was subject to this very vital and essential condition, namely, that before an assessee could be held entitled to exemption under the two Government orders referred to supra it should be shown or substantiated that the end-products concerned were manufactured out of the raw materials which had already suffered tax under the Tamil Nadu General Sales Tax Act, 1959. The Government order dated March 17, 1986 merely stipulated the condition or mode of such proof to prevent abuse and evasion by manipulation. 7.. The contention raised on behalf of the petitioner in the present case, in substance and effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same vice or infirmity which the other notifications dated January 24, 1982 and March 13, 1982 were held to suffer as noticed by the Division Bench of this Court in the judgment dealt with above. The stipulation in the new notification dated March 17, 1986 ensures the remittance of tax at least at one stage and if the plea of the petitioner is to be accepted it would be difficult to properly ascertain as to whether the end-products in respect of which exemption claimed has been really or actually manufactured out of raw materials which actually suffered the tax at the raw material stage under the Tamil Nadu General Sales Tax Act. The plea for the petitioner though appears to be innocuous, once granted, it is likely to defeat the very object of the exemption and completely throw over board the enforcing machinery under the Tamil Nadu General Sales Tax Act, inevitably leading to large scale evasion of tax due to the State. It will disable the authorities to properly verify the question as to whether the petitioner claiming exemption has in fact substantiated compliance with the necessary conditions precedent and essential ingredient for claiming such exemptions, viz., payment of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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