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TMI Blog2015 (12) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the products manufactured other than the one so specified and converted the same into a different commercial commodity in some other forms by the Petitioner - petition allowed by way of remand. - W. P. No. 41244 of 2006 - - - Dated:- 18-12-2015 - Mr. R.Mahadevan, J. For Petitioner : Mr.C.Natarajan, SC for Mr.N.Inbarajan For Respondents : Mr.S.Manoharan Sundaram, AGP ORDER In this Writ Petition, the Petitioner seeks to quash the impugned notice dated 9.10.2006 of the 1st Respondent, which holds that the Petitioner is not eligible for interest free sales tax deferral benefit and proposing to recover the deferral amounts. 2. The necessary facts of the case of the Petitioner are as follows:- a. The Petitioner is engaged in the business of manufacture and the sale of paper boards and a registered dealer under the Tamil Nadu General Sales Tax Act, 1959 and the Central Sales Tax Act, 1956. The Government of Tamil Nadu, by GO.Ms.No.43, Industries (MIG II) Department, dated 13.12.1992 and other GOs, extended interest free sales tax deferral benefit for the industries set up in various areas for various periods. The object of such a deferral facility was to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Unit, as a going concern, was effected on 19.3.2004. Thereafter, the Petitioner entered into a deed of agreement dated 27.5.2004 with the territorial Assistant Commissioner of Commercial Taxes, Zone II, Coimbatore. On the basis of the events as aforesaid, the Petitioner became entitled to the deferral facility from March 2004 onwards. As the Assistant Commissioner (CT), Zone II, Coimbatore required the Petitioner to secure a separate registration Certificate under the State Act, in spite of the Petitioner informing him regarding their registration under the Local Act with the Thiruvottiyur Assessment Circle, the Petitioner applied for a fresh registration certificate before the Commercial Tax Officer, Mettupalayam. Accordingly, the Petitioner was granted fresh registration certificates in Form D-1 under the Local Act and Form B under the Central Act for the manufacture of Paper Boards. On that basis, the Petitioner began to file returns under the Local Act and Central Act with the Commercial Tax Officer, Mettupalayam and reported all their transactions and claimed the IFST deferral benefit on the sale of paper boards manufactured in the Unit. In March 2005, the Petitioner took up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvall Paper Board Limited was not modified or altered or granted by way of fresh eligibility certificates. Therefore, the Petitioner is not entitled to claim any IFST facility based on the eligibility certificate originally given to M/s.Servall Paper Board Limited. The Petitioner or their predecessor has not obtained the permission of the Government for the slump purchase/sale of the fixed assets. From a perusal of the documents submitted before the respondents, it was seen that no such permission was granted by the Government for the alleged transfer of deferral facility. However, permission was granted by SIPCOT merely to effect that the slump sale of business from BIPCO Limited to the Petitioner company vide proceedings dated 8.12.2003. The 2nd Respondent by proceedings dated 27.2.2004 confirmed that both BIPCO Limited and the Petitioner have given undertaking to the effect that either of them in their individual capacity would assume responsibility for transfer and take over of the deferral facility used by BIPCO Ltd. Thus, it is seen that there is no specific Eligibility Certificate in the form prescribed. b. Enjoyment of a facility, without authority to do so, is a violati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (IFST) for a period of 10 years from 1.8.1997 to 31.07.2007, by the Eligibility Certificate, dated 1.6.2000, which was taken over by M/s.Bilt Industrial Packaging Company Limited (BIPCO), for which approval was accorded by the 2nd Respondent, by proceedings dated 18.08.2000 and a Deed of Agreement dated 8.11.2000 with BIPCO to maintain sales tax deferral facility has also been entered into. As per G.O.Ms.No.31, dated 6.2.2003, the Petitioner by letters dated 13.11.2003 and 18.11.2003 sought for permission for purchase of the Unit along with the deferral benefit. The 2nd Respondent by proceedings dated 8.12.2003, granted approval for such transfer of the Unit. The Petitioner also entered into an agreement dated 7.11.2003 with BIPCO and fresh eligibility certificates were given both under the State Act and the Central Act by proceedings dated 19.3.2004 for the manufacture of 'paper boards' and thus, the transfer of the Unit as a going concern was effected on 19.3.2004. Thereafter, the Petitioner entered into a deed of agreement dated 27.5.2004 with the territorial Assistant Commissioner of Commercial Taxes, Zone II, Coimbatore. 8. According to the Petitioner, the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st Respondent in the impugned order that the Petitioner is not entitled to such facility is baseless. Even after cancellation of the the registration certificates, a direction was given to include the turnovers of the Unit, while passing final assessment order. Further, the 1st Respondent without issuing any prior notice and looking into the GOs, the registration certificates and without considering the records and the agreement and the returns filed by the Petitioners, passed the impugned order, without any basis. However, since there are allegations made by the Respondents against the Petitioner with regard to the violation of the conditions in respect of the products manufactured other than the one so specified and converted the same into a different commercial commodity in some other forms by the Petitioner, the matter is to be remanded back to the Respondents for fresh consideration, by setting aside the impugned order. 12. In view of the above reasons, the impugned order is set aside and the Respondents are directed to redo the entire assessment on the basis of the documents produced, after giving sufficient opportunity to the Petitioner, on merits and in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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