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TMI Blog2010 (4) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... , J. ORDER:- Mrs. CHITRA VENKATARAMAN J. The petitioner herein set up a new unit for manufacture of catalytic converties and their parts for automobiles and motorcycles in the industrial estate at Maraimalai Nagar, Kancheepuram. As a newly established undertaking, the petitioner went in for the benefit of deferral of sales tax for a period of nine years. The third respondent granted eligibility certificate on December 7, 2000 for a period of nine years calculated from the date of commencement of commercial production, i.e., September 1, 1998. The deferral was for 100 per cent of the value of initial gross fixed assets, i.e., Rs. 106.63 lakhs. The repayment schedule was from September 1, 2007 to August 31, 2016. Subsequent thereto, the petitioner went in for expansion of the unit by additional investment. The IFST benefit was granted for this expanded unit by the third respondent herein, vide proceedings dated September 30, 2002. This was also for a period of nine years from the date, the unit commenced its commercial production, i.e., April 1, 2000 to March 31, 2009. The repayment was to start from April 1, 2009 to March 31, 2018. It is stated that the petitioner had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the deferral. The learned counsel appearing for the petitioner pointed out to the Notification in G.O. Ms. No. 376 dated October 27, 1992, which was made in exercise of the power available under section 9(2) of the Central Sales Tax Act, 1956 read with section 17A(1) of the Tamil Nadu General Sales Tax Act, 1959 and G.O. Ms. No. 12, Commercial Taxes Department dated January 23, 2000 and G.O. Ms. No. 13, Commercial Taxes Department dated January 24, 2000, which were made in exercise of the authority under section 8(5) of the Central Sales Tax Act, and submitted that since the grant of deferral is specific and relatable to the powers of the Government as per G.O. Ms. No. 500 dated May 14, 1990 as well as the subsequent Government Orders issued thereon, the claim has to be considered in terms of the notification pertaining to the deferral issued under the provisions of the Central Sales Tax Act read with section 17A(1) of the Tamil Nadu General Sales Tax Act. Hence, the SIPCOT is bound to extend the benefit of deferral by amending the eligibility certificate, taking note of the specific notifications issued under section 9(2) of the Central Sales Tax Act read with section 17A(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (F1) Department, dated November 12, 2001 directed the eligibility criteria for expansion/diversification units to be on par with new units as contained in G.O. Ms. No. 12, Commercial Taxes Department, dated January 23, 2000. It is seen that under G.O. Ms. No. 13, Commercial Taxes Department dated January 24, 2000, the Government dispensed with the Central sales tax deferral facilities to the industries which had commenced production after January 24, 2000. G.O. Ms. No. 16, Commercial Taxes (C1) Department dated March 1, 2002 ordered that G.O. Ms. No. 13, Commercial Taxes Department dated January 24, 2000 would apply to industries in pipeline as referred to in G.O. Ms. No. 12, Commercial Taxes Department dated January 23, 2000. Since there was no specific mention as to whether the Government Order would apply to industries in pipeline relating to expansion/diversification for which the Government had issued orders, the third respondent intimated the petitioner that they were awaiting reply from the Government. It is further seen that Notification in G.O. Ms. No. 16, Commercial Taxes (C1) Department dated March 1, 2002 issued under section 8(5) of the Central Sales Tax Act was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respective of the availability of such benefit, solely based on the authority available under the statute, notifications were issued under section 8(5) of the Central Sales Tax Act granting exemption/reduction from payment of Central sales tax under stated specific conditions applicable to dealers/or to specific dealers; on the other hand, the notification issued under section 8(5) of the Central Sales Tax Act has no reference or relevance to the waiver/deferral of sales tax granted in terms of specific Government orders, followed by notifications issued under section 17A of the Tamil Nadu General Sales Tax Act and notifications issued under section 9(2) of the Central Sales Tax Act read with section 17A(1) of the Tamil Nadu General Sales Tax Act. It is relevant to note that notifications issued under the specific provision of section 9(2) of the Central Sales Tax Act read with section 17A of the Tamil Nadu General Sales Tax Act in terms of the policy of the Government on deferral as given under G.O.Ms. No. 500 dated May 14, 1990 and other various Government Orders and the notifications issued under the power conferred on the State by reason of specific provision under the Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding G.O.Ms. No. 16, Commercial Taxes (C1) Department, dated March 1, 2002 issued under specific provision of section 8(5) of the Central Sales Tax Act has no relevance at all in considering the claim of the petitioner. Hence, going by G.O.Ms. No. 104, Industries Department dated November 12, 2001, read along with G.O.Ms. No. 376 dated October 27, 1992, I have no hesitation in granting the prayer to the petitioner, thereby directing the third respondent to amend the eligibility certificate incorporating the benefit of G.O.Ms. No. 376 dated October 27, 1992 and granting the deferral in respect of Central sales tax liability also within a period of six weeks from the date of receipt of a copy of this order. In W.P. No. 26437 of 2004, the petitioner has sought for a writ of mandamus to direct the respondents to restore the Central sales tax of Rs. 48,94,636 remitted under letter dated October 27, 2003 for the assessment year 2002-03 and further sums so recovered during the deferral period from July 7, 2003 to March 31, 2004 and from May 26, 2004 for the assessment year 2004-05 while rescheduling the repayment as per G.O. Ms. No. 500 dated May 14, 1990 and such other orders of the G ..... 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