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TMI Blog2014 (12) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... f the kind of sugar, once it is an imported sugar, the sales tax levy under entry 61 of Part B stands automatically attracted to the sales and if sold as such, retaining its original character attracts tax at four per cent under the First Schedule to the Act. But when once imported sugar is not dealt with as such for sale, but has been subjected to a manufacturing process, the liability under the First Schedule no longer stands attracted to the manufactured sugar. Therefore, the assessment is to be redone. - Matter remanded back - W. P. No. 31794 of 2014, M. P. No. 1 of 2014 - - - Dated:- 8-12-2014 - T. S. Sivagnanam, J. N. Prasad for the petitioner. A. R. Jayaprathap, Government Advocate, for the respondents. The none appeared for respondent No. 2. ORDER Heard Mr. N. Prasad, learned counsel appearing for the petitioner and Mr. A. R. Jayaprathap, learned Government Advocate appearing for the first respondent and with the consent of the learned counsel on either side, the writ petition itself is taken up for disposal. The petitioner is a public limited company incorporated under the Companies Act and engaged in the activity of manufacture of cane sugar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 that the imported raw sugar was processed and re-exported as white sugar. Further, it was stated that they have fulfilled the export obligation as per the advance licence up to August 24, 2006 and the balance quantity will be exported as and when the export ban is lifted, since there is a ban for export of sugar at the relevant time. Further, it was stated that what they have sold locally is the processed white sugar of a quantity of 37,649 metric tones during the assessment year 2004-05. Further, it was stated that entry No. 61 of Part B of the First Schedule to the Act will not apply to their case since the raw sugar imported into India was processed, converted into white sugar and re-exported and what has been sold locally is only the processed white sugar and entry No. 61 of Part B pre-supposes sale, as such the imported raw sugar which has not taken place in their case. Further, it was submitted that the processed sugar sold locally falls under entry No. 1(i) of Part A with the Third Schedule to the Act as sugar falling under Chapter 17.01 of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and the process of white sugar so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined to give judicial deference to Legislature judgment in the field of economic regulation than in other areas where fundamental human rights are involved. . . The court must always remember that 'legislation is directed to practical problems, that the economic mechanism is highly sensitive and complex, that many problems are singular and contingent, that laws are not abstract propositions and do not relate to abstract units and are not to be measured by abstract symmetry' that exact wisdom and nice adoption of remedy are not always possible and that 'judgment is largely a prophecy based on meagre and un-interpreted experience'. Every legislation particularly in economic matters is essentially empiric and it is based on experimentation or what one may call trial and error method and, therefore, it cannot provide for all possible situations or anticipate all possible abuses. There may be crudities and inequities in complicated experimental economic legislation but on that account alone it cannot be struck down as invalid. . . The court must, therefore, adjudge the constitutionality of such legislation by the generality of its provisions and not by its crudities o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must apply a fortiori in regard to a provision for recovery or collection where it is not necessary for the Legislature or for the administrative authority to bring in every conceivable transaction in order to sustain a provision for recovery of tax at source. A statutory provision and, for that matter a notification issued there under, does not cease to be valid nor would it suffer from the vice of arbitrariness, merely because it has not imposed a liability to deduct tax at source on other entities or transactions. Thus, a reading of provisions as contained in Chapter 3 of the Tamil Nadu General Sales Tax Act shows that as far as the consideration on exemption under the Third Schedule is concerned, all that we need to look at therein is not as to whether sugar to be exempted under the Sales Tax Act has suffered additional duties of excise duty levy, but whether what is sold by the petitioner fits in with the description given under the First Schedule to the Additional Duties of Excise Act. In so identifying the goods, the question of entering into an enquiry as to whether there is a payment of the liability under the Excise Act to result in sharing of the revenue between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e effect of decision in the case of Shree Ambika Sugars [2013] 63 VST 279 (Mad) can also be pressed into service by the petitioner in support of their contention. Hence, for all the above reasons, this court is of the view that the petitioner need not be relegated to avail of the alternate remedy available under the Act, since the impugned proceeding is vitiated on the ground of violation of principles of natural justice and without due application of mind to the facts and contentions raised. The assessing officer did not endeavour to deal with the merits of the contentions raised by the dealer and therefore, it is a fit case for the assessment to be redone. It is relevant to point out that the proceedings commenced in the year 2006 and concluded in 2014, three assessing officers had changed in the interregnum. Apart from that there is no reference to the proceedings initiated by the enforcement wing, the assessment order is silent about the delay in finalising the matter and the delay remains unexplained. As pointed out by the Commissioner in various circulars issued which are binding on the assessing officer, when the assessing officer proposed to reopen the assessment by i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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