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TMI Blog2014 (5) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... on Notification - Compliance with the terms of scheme – under the Tamil Nadu General Sales Tax Act - Held that:- In contra distinction to the proviso to Section 9, the notification which preceded the introduction of the proviso to Section 9 left the subject of export open, in the sense, there is no insistence of export of what was purchased by the registered exporter - Thus in the absence of any specific restriction seen in the notification, one has to read it as an open ended clause on export – There is no hesitation in accepting the case of the assessee that the notification leaves no restriction as to the subject of export to condition the grant of exemption – In the face of the registration granted to the ultimate exporter as a registered exporter and the conditions of the notification thus satisfied, the Tribunal held that the assessee had rightly claimed the benefit of exemption. Reference to Sec 5(3) of CST Act with proviso Sec 9 of TNGST Act – Held that:- As far as the reference to Section 5(3) of the Central Sales Tax Act, which is same as proviso to Section 9 of TNGST Act is concerned, the Tribunal pointed out that the exemption granted herein is of a general nature w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, the assessee claimed exemption in respect of sale of cotton yarn to the registered exporter. Incidentally, it is an admitted fact that the assessee is enjoying the benefit of IFST waiver scheme. A perusal of the order of assessment, made on 31.3.1999, shows the assessee's status as a beneficiary of IFST wavier scheme and accordingly, after computing the taxable turnover, the tax payable on the first sales of cotton yarn to the tune of ₹ 1,24,06,706/- was granted waiver. 3. It is the case of the assessee that at the time of filing the original return, the assessee, however, did not make any claim based on notification No.197(a)/1970 dated 27th July, 1970 in respect of sale of cotton yarn to the registered exporter. However, subsequently, the assessee is stated to have filed a revised return claiming the benefit of exemption notification. The filing of revised return is evident from the acknowledgement affixed in the delivery book on 27.7.1998. Leaving this revised return for a moment, the fact herein is that except for calling for check of accounts before passing the order of assessment, admittedly, no notice was issued by the Assessing Officer to the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal pointed out that it was no doubt true that there was no definition of the term 'registered exporter' in the notification granting exemption. Nevertheless, given the fact that the 'registered exporter' has been defined under the Import and Export (Control) Act by the Apparel Export Promotion Council sponsored by the Government of India - Ministry of Textiles, the purchaser from the assessee thus being a certified registered exporter, the claim of exemption could not be negatived. Further, the Tribunal pointed out that the grant of exemption or a concession was a prerogative of the State; when the words used in the notification were clear and there being no implied repeal of the said notification after the introduction of the proviso to Section 9 of the Tamil Nadu General Sales Tax Act, the assessee was entitled to the benefit of the notification. The Tribunal negatived the stand of the Revenue that exemption would be available only if and when the registered exporter had exported the purchased yarn as such and not otherwise. The Tribunal pointed out that when the assessee had produced necessary documents as regards export by the registered exporter, the claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bout export of the very same goods purchased. Thus, going by the plain words and the purport of the notification, the Tribunal rightly held that the assessee was entitled to exemption. 10. Heard learned Special Government Pleader appearing for the petitioner and the learned Senior Counsel appearing for the assessee and perused the materials placed before this Court. 11. As far as the claim of the Revenue in this Tax Case Revision is concerned, we do not find that there is any justifiable ground even to maintain this Tax Case for the simple reason that admittedly the assessee is a unit enjoying IFST Waiver Scheme, in which event, the tax effect on the sales effected by the assessee is nil. All that the Assessing Authority had to see in the matter of considering the claim on the benefit of IFST Waiver is to find out as to whether the assessee had complied with the terms of the waiver scheme. Given the fact that the Assessing Authority had passed an order of assessment recognising the claim of the assessee for IFST waiver of the liability on the first sales of cotton yarn, we feel that it matters very little as to whether the notification would have any application to the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall produce proof of export, before the final check of their accounts for the year concerned to the satisfaction of the assessing authority concerned . 14. A reading of the said notification shows that cotton yarn manufactured and sold to the registered exporter is granted exemption from payment of tax under the Tamil Nadu General Sales Tax Act. Thus, the only condition subject to which exemption is granted apart from the above is that the seller should produce proof of export before final check of accounts for the year concerned to the satisfaction of the Assessing Authority concerned. Given the fact that the assessment itself was finalised even before a notice of assessment was issued and without reference to the revised return filed, evidently, the assessee had no opportunity to produce any records evidencing the proof of export. 15. Leaving this aspect again, a reading of the notification shows that what is contemplated for exemption is the sale of cotton yarn manufactured by a dealer to a registered dealer, as far as export aspect is concerned, absolutely there is no condition imposed therein that the export must be of cotton yarn alone. In contra distinction to the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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