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TMI Blog2019 (3) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... for Clarification and Advance Ruling, dated 25.10.2016, has clarified both the G.O.Ms.No.78 and 79. They have clarified that only 4% of the tax is payable if the sales were effected upto 11.07.2011 and 5% tax is payable if the sales were effected from 12.07.2011 onwards. Despite categorical clarification given in the Proceedings of the Authority for Clarification and Advance Ruling, dated 25.10.2016, the respondent has passed the impugned assessment order levying higher rate of tax at 14.5%, based on the entire value of the cars in stead of 5% on the value addition of the cars alone. This Court is of the considered view that the assessment order has been passed without jurisdiction and without applying the mind to G.O.Ms.78 and 79 referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the sale of above good to 5%. 3.It is also the case of the petitioner that the petitioner in his reply sent to the second respondent, had brought to the notice of the second respondent the Notification No.II(1)/CTR/30(a-5)/2007, in G.O.Ms.No.79, Commercial Taxes and Registration (B2) Department, dated 23.03.2007, wherein it has been clarified by the respondent that the tax payable by the registered automobile dealer is only on the value addition without input tax credit and not on entire sale value at 5%. According to the petitioner, despite bringing to the notice of the second respondent about the aforesaid G.O., the second respondent has passed the impugned assessment order dated 27.11.2018, by total non-application of mind and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Supreme Court in Commissioner of Sales Tax, Uttrapradesh Vs. Indra Industries reported in 122 STC 100, wherein he referred to paragraph 3 of the said judgment, which reads as under:- 3. A circular by tax authorities is not binding on the courts. It is not binding on the assessee. However, the interpretation that is thereby placed by the taxing authority on the law is binding on that taxing authority. In other words, the taxing authority cannot be heard to advance an argument that is contrary to that interpretation. 7.According to the petitioner, as per the Proceedings of the Authority for Clarification and Advance Ruling dated 25.10.2016, the tax payable by the registered automobile dealers for used cars and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on the entire value of the cars in stead of 5% on the value addition of the cars alone. As rightly pointed by the learned counsel for the petitioner that when the possible interpretation has been give by the taxing authority namely., the Proceedings of the Authority for Clarification and Advance Ruling, dated 25.10.2016, under Section 48(A) of the Tamil Nadu Value Added Tax Act, 2006, the said interpretation is binding on the respondent. The Hon'ble Supreme Court has also considered this aspect and held in the decision cited supra that interpretation given by the taxing authority on law is biding on that taxing authority. 10.In the light of the above observations, this Court is of the considered view that the assessment order h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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