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TMI Blog2017 (6) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... of India Cements Limited, the impugned order has to be set aside and the matter requires fresh consideration - petition allowed by way of remand. - W.P. No. 20070 of 2003 - - - Dated:- 27-3-2017 - S. M. Subramaniam, J. For Petitioners : Mr. N. Prasad For Respondents : Mr.S.Kanmani Annamalai, Mr.Ramesh Venkatachalapathy ORDER The petitioner, Tvl.Mira Textiles and Industries India Limited, is an assessee on the files of the Commercial Tax Officer, Annasalai III Assessment Circle, the first respondent, under the provisions of Central Sales Tax Act 1956 (for short, 'CST Act'). 2. The challenge in this Writ Petition is to the assessment order passed by the first respondent, vide proceedings, dated 09.06.2003, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company has to achieve its production volume and base sales volume in order to avail itself of the interest free sales tax deferral facilities, and in view of the abovesaid Government Order, the petitioner is not entitled to the benefit under the existing deferral scheme. 5. Heard the learned counsel appearing for the petitioner and the learned Additional Government Pleader for respondents 1, 3 and 4 and perused counter affidavit ''filed by the second respondent and the judgments relied upon by the learned counsel for the petitioner, as cited supra. 6. As rightly pointed out by the learned counsel for the petitioner, the issue involved in this Writ Petition is covered by the aforementioned decisions. In the decision rendered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the decision of the High Court cannot be flawed with in light of the circular dated 1st May, 2000 issued by the office of the Principal Commissioner and Commissioner of Commercial Taxes, Chennai, in exercise of power conferred on him under Section 28A of the TNGST Act. For the sake of ready reference, the relevant portion of the circular is extracted below: As per GOMs No.119, CT RE/13.4.1994 as regards expansion cases it was decided that the past revenue shall be protected obtained prior to expansion. The BPV/BSV is fixed on the basis of highest annual production/sales in the 3 years prior to expansion. Thus the industries will have to pay the taxes due upon the turnover and until the Base Production Volume/Base Sales volume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of the first respondent. It is trite law that circulars issued by the revenue are binding on the departmental authorities and they cannot be permitted to repudiate the same on the plea that it is inconsistent with the statutory provisions or it mitigates the rigour of the law. 8. Thus, in the light of the principles laid down by the Hon'ble Supreme Court and the Hon'ble Division Bench of this Court in the cases referred to supra, the impugned order has to be set aside and the matter requires fresh consideration. Accordingly, the Writ Petition is allowed, the impugned order, dated 09.06.2003, stands quashed and the matter is remitted back to the first respondent for fresh consideration by taking into consideration the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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