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TMI Blog2019 (5) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... tate its case or its objections before the said Communication and Clarification were issued. Although Section 28 A of the TNGST empowers the Commissioner of Commercial Taxes to issue a clarification on the rate of tax in response to a request from a registered dealer, the said communication and Clarification also do not cite any applicable provisions of law. Further, the Assessment Order dated 15.06.2006 was issued without waiting for the objections of the Petitioner and, therefore, the assessment order does not consider the submission that cotton seeds that are used only for seeding purposes are exempted under Entry 7 of Part -B of the III Schedule. Consequently, it is in the interest of justice that the Assessment Order dated 15.06.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the Petitioner, the seeds were classified under entry 17, 18, 19 and 20 of Part-B of the Third Schedule of the Tamil Nadu General Sales Tax Act, 1959 (the TNGST Act) and the said entries read as under: 17.Bacterial culture for agricultural purpose; 18.Organic manures and green manure seeds; 19.Certified and truthfully labelled seeds for seeding purpose; and 20.Vegetable seeds and flower seeds but excluding oil seeds. Subsequently, Part-B of the III Schedule was amended on 27.03.2002. In the amended Part-B of the III Schedule, the erstwhile entries 17,18,19 and 20 were replaced by entry 7 which reads as under: 7.Bacterial culture for agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in entry 7 Part-B of the III Schedule. Thereafter, the assessment order dated 15.06.2006 was issued under the TNGST Act whereby tax was imposed on the basis that cotton seeds are oil seeds and, therefore, taxable under the II Schedule. The assessment order is also impugned herein. An interim stay of the impugned proceedings is in force from 27.09.2006. 3.At the hearing, the learned counsel appearing for the Petitioner referred to and relied upon the Order of this Court in Tvl.CHENNAI PESTICIDES Vs. THE SPECIAL COMMISSIONER AND COMMISSIONER OF COMMERCIAL TAXES, CHENNAI in W.P.No.13986 of 2007, which is a case relating to the sale of certified cotton seeds for sowing purpose. In the said case also, the contention of the Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 48 A of the Tamil Nadu Value Added Tax Act, 2006. On the basis of the above Order, the learned counsel for the Petitioner submitted that Clarification No.147/2005 is liable to be quashed and that the Assessing Authority should be directed to make a fresh assessment after providing reasonable opportunity to the Petitioner. 5.In response, the learned counsel appearing for the Respondents submitted that when the III Schedule to the TNGST Act was amended, entries 17,18,19, and 20 were omitted. Instead entry 7 was introduced and entry 7 does not include the language of entry 19 of the pre-amended III Schedule. Accordingly, the submission of the learned counsel was that certified and truthfully labelled seeds for see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of 4% under entry 6(iii) of the II Schedule to the TNGST Act. The said Communication and Clarification do not contain any reasons. It also appears that proper opportunity was not provided to the Petitioner to state its case or its objections before the said Communication and Clarification were issued. Although Section 28 A of the TNGST empowers the Commissioner of Commercial Taxes to issue a clarification on the rate of tax in response to a request from a registered dealer, the said communication and Clarification also do not cite any applicable provisions of law. Further, the Assessment Order dated 15.06.2006 was issued without waiting for the objections of the Petitioner and, therefore, the assessment order does not consider the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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