9911796707
TMI Blog2009 (1) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... form is essential. In W.P. No. 16154 of 2008, by order dated March 31, 2008, the Commercial Tax Officer, Thiruvanmiyur, based on the circular, dated June 10, 2002, disallowed the concessional rate of tax at five per cent on the sales of scientific instruments to the educational institutions. As common questions of law and facts are involved, all the writ petitions are taken up together and disposed of by a common order. The brief facts leading to the writ petitions are as follows: The petitioners are registered dealers, engaged in the sale of scientific instruments and equipment to educational institutions, such as colleges and hospitals. According to them, the scientific instruments and equipment are being used in the laboratories in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax Act, by Act 20 of 2002, with effect from May 11, 2002, relates only to one category of sales, viz., sales effected to Government and registered dealers and it does not apply to educational institutions and hospitals. Therefore, the learned counsel submitted that if the interpretation of the taxing authorities is accepted, then G.O.P. No. 595, CT & RE dated April 15, 1988, would become ultra vires article 301 of the Constitution of India in that scientific instruments delivered for consumption within the State of Tamil Nadu to the same class of buyers get taxed at a lower rate, when compared to scientific instruments sold for consumption and delivery outside the State. The learned counsel for the petitioners further submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) by the dealer, if it is satisfied that it is necessary so to do in the public interest, by notification in the official gazette, and subject to such conditions as may be specified therein, direct,- (a) that no tax under this Act shall be payable by any dealer having its place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, to a registered dealer or the Government from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification, (b) that in respect of all sales of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. But by erroneous application of the amendment brought about by section 8(5) of the Central Sales Tax Act, by Act 20 of 2002, with effect from May 11, 2002 to the petitioners, the Department has proceeded to disallow the concessional rate of tax at five per cent to the educational institutions. As rightly contended by the learned counsel for the petitioners, the amendment is not applicable to the sales effected by any registered dealer of scientific equipment and instruments to educational institutions for use in teaching science or to hospitals. Even after the amendment of the Central Sales Tax Act on May 11, 2002, G.O.P. No. 595, CT & RE, dated April 15, 1988 has not been rescinded and therefore, the petitioners would be entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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