9911796707
TMI Blog2011 (4) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... granted in G.O. Ms. No. 526/CT & RE dated November 21, 1997. 2. The petitioner is a company registered under the Companies Act. The petitioner is a registered dealer under the Tamil Nadu General Sales Tax Act, 1959 on the files of the respondent. The petitioners have been recognised as 100 per cent export oriented unit for manufacture and export of rubberised wheel automobile tubeless tyres, etc., by the Government of India, Ministry of Commerce and Industry, Department of Commerce and approved by the office of the Development Commissioner, MEPZ, Special Economic Zone and HEOUS in Tamil Nadu, Pondicherry, Andaman and Nicobar Islands, Chennai 600 045. The petitioners are manufacturing rubber compounded rings, etc., and they are exporting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, the petitioners are liable to pay tax in the case of goods mentioned in the First Schedule, at the rate and at the point specified therein on the turnover in each year relating to such goods. Part C of the First Schedule, item 33(ii), deals with rate of tax on the purchase of the raw rubbers of all varieties and grades and the same is at eight per cent. The petitioners are also bound to pay the aforesaid tax, if the petitioners are not 100 per cent export oriented unit, as the Government issued G.O. Ms. No. 528, CT & RE Department, dated November 21, 1997, exempting 100 per cent export oriented unit from the payment of tax on the purchase of raw materials. G.O. Ms. No. 528, CT & RE, is extracted herein: "Notifications Government of T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tamil Nadu General Sales Tax Act and that the refund has been made by SIPCOT and the amount involved by way of reimbursement has been of the order of Rs. 26 lakhs only during 1996-97. He has requested the Government that instead of the refund of tax, the 100 per cent Export oriented units and the units located in Madras Export Processing Zone (MEPZ) may be exempted from payment of sales tax. 3. Government examined the matter in consultation with the Special Commissioner and Commissioner of Commercial Taxes. With a view to encourage the exports from Tamil Nadu they arrived at a decision that all raw materials purchased within the State by registered 100 per cent export oriented units and units located in Chennai Export Processing Zone ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of sales tax. This notification is intended to achieve the above object." 7. But the respondent has proceeded that the petitioners have not effected the sale of raw rubber to 100 per cent export oriented unit and hence the exemption is not admissible. Holding so, the respondent held that the petitioners are liable to pay tax at the rate of eight per cent on the last purchase turnover of raw rubber. 8. According to the respondent, since the petitioners do not effect the sale of raw rubber to 100 per cent export oriented unit, they are not entitled to exemption under G.O. Ms. No. 528 CT & RE dated November 21, 1997. The purport of the Government Order is that the petitioners being an 100 per cent export oriented unit, they are entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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