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TMI Blog2013 (4) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... he same company, i.e., M/s. Adiyaman Textiles Ltd., represented by its Managing Director situated at Kaveripattinam, Krishnagiri District. 3. In the first two writ petitions, the challenge is to the assessment orders issued in Form 19 of the Tamil Nadu General Sales Tax Act, dated 31.7.2007 and 29.6.2007 respectively. By the impugned notice, the petitioner company was directed to pay the tax for additional spindles engaged by them while availing the benefit under IFST Scheme. It was for the period from 01.11.1996 to 31.10.2005. When availing the deferral scheme for payment of Sales Tax, the Enforcement Wing of the Commercial Tax Department had inspected the premises and found that they had originally installed 7424 spindles. At the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quent two writ petitions challenging the revised notice dated 1.9.2008 issued by the Assistant Commissioner, Commercial Tax, Krishnagiri. It was informed in the impugned notice dated 1.9.2008 that the extra 4792 spindles were used for the entire year and it was not reported to the department. Hence the revised tax was made. In W.P.No.23415 of 2008, while the assessment turnover was at Rs. 6,89,94,769/- in respect of the cotton yarn, in W.P.No.23416 of 2008, it was Rs. 83,68,086/- relating to cotton yarn. Both the notices dated 1.9.2008 are under challenge in the subsequent writ petitions. The petitioners have also referred to a division bench judgment of this court in W.P.No.17127 of 2002, dated 15.12.2005 and stated that action initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on inspection found that they had increased the spindles to 12216 for production of yarn and that additional installation of 4292 spindles were made and increased production was done. As per the agreement entered into with the Commercial Tax Department, they are eligible for deferral of sales tax on the increased volume of production subject to condition that the increased volume of production shall be reflected in any one of the year during the last three years preceding the date of commencement of deferral. The petitioner never reported the installation of additional number of spindles as well as never paid the tax on the value of yarn produced. 9.It was found that the sale turnover for the years 1996-97, 1997-98, 1998-99 were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 and 7 it was stated as follows: "3.Based on the above, the holder of this E.C. will be eligible for deferral of sales tax not exceeding Rs. 125.34 lakhs (Rupees One Hundred and Twenty Five Lakhs and Thirty Four Thousands only) interest free for NINE YEARS from the month in which the holder's unit commenced its commercial production i.e., from 1.11.96 to 31.10.2005. 4.2. 100% of the value of initial gross fixed assets i.e. Rs. 125.34 lakhs (Rupees One Hundred and Twenty Five Lakhs and Thirty Four Thousand only). 6. The deferral scheme will be applicable to the company only as long as it manufactures products for which the E.C has been issued..... 7. Violation of any of the conditions in the Eligibility certific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in (2005) 2 SCC 575 and in paragraphs 21 and 22 it was held as follows: "21.Section 17-A of the Tamil Nadu General Sales Tax Act confers power on the State Government to notify deferred payment of tax for certain industries including sick units. The relevant extract of the section reads thus: 17-A. Power of Government to notify deferred payment of tax for new industries, etc. (1) The Government may, in such circumstances and subject to such conditions as may be prescribed, by notification issued whether prospectively or retrospectively defer the payment by any new industrial unit or sick unit or sick textile mill of the whole or any part of the tax payable in respect of any period: Provided that such retrospective effect sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... phasis added) 14. In the present case, the writ petitions are liable to be rejected on more than one ground:- (i) The petitioner has not availed the appellate remedy provided under the TNGST Act. (ii) The petitioner having got the eligibility certificate followed by an agreement had clearly breached the said agreement. (iii) The decision referred to in Jai Jagadhambiga Textiles Mills Ltd., case is clearly distinguishable as in that case even for the expansion, necessary modification was obtained from the competent authority in the eligibility certificate. In the above circumstances, the argument that installation of additional spindles will not be in violation of the eligibility certificate and the ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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