9911796707
TMI Blog2015 (5) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial Air Compressors, an application was filed by M/s.Schumak Equipments India Pvt. Ltd., who are manufacturers of Industrial Air Compressors and they sought for clarification as regards the rate of tax for industrial air compressors. Advanced Ruling Authority, by order dated 24.06.2014, clarified that Industrial Air Compressors are liable to tax @ 5% as capital goods within the meaning and scope of Entry 25 of Part-B of First Schedule r/w Section 2(11) of the TNVAT Act, 2006. In the light of the subsequent development, this Court is of the view that the Assessing Officer should take note of the clarification issued by the Advanced Ruling Authority. So far as the rate of tax is concerned, the order of the Advanced Ruling Authority dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts contentions that the air compressors manufactured by the petitioner and used by the end user were meant for use as capital good. Despite production of such records, the respondent mechanically rejected the contentions of the petitioner and confirmed the proposal. 5. Other ground on which the impugned order has been challenged is with regard to reversal of input tax credit for the assessment year 2011-2012 alone on the ground that 'C' declaration forms were produced at the time of assessment. The petitioner's case is that at the time when the assessment was finalized, the assessment under CST is yet to be finalized. Therefore, 'C' declaration forms could not be produced, but it is now available with the petitioner a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dealers, would attract the same rate of 5% by virtue of Entry 25 of Part-B of First Schedule to the Act. Just because of having sold by the manufacturers of machinery and its spares, components and accessories to their buyers being the dealers in such lines for further distribution to the industry, would not alter the legal position and subject these goods for levy at the higher rate of 14.5% construing that these goods would fall under the residual Entry 69 of Part-C of First Schedule to the Act 8. In terms of the above ruling, it has been held that just because of having sold by the manufacturers of machinery and its spares, components and accessories to their buyers being the dealers in such lines for further distribution to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment under the provisions of CST Act has been completed and the petitioner has requisite 'C' declaration forms and is ready to produce the same before the authority in respect of the assessment year 2011-2012. 10. In the result, all these writ petitions are allowed. Impugned proceedings are quashed and the matter is remanded back to the respondent for fresh consideration. The respondent shall afford an opportunity of personal hearing to the petitioner by issuing notice on which date the petitioner through its authorized representative shall appear and produce all records, including the decision taken by the Advanced Ruling Authority referred supra and the respondent, after considering the same, shall pass fresh orders in ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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