9911796707
TMI Blog2019 (5) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner, the said product comes within the scope of heading '58.06' of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (the Additional Duties of Excise Act). Therefore, the said product is exempted from sales tax under Entry 11 of Part A of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 (the TNGST Act), which reads as follows: "11.Narrow woven fabrics of silk, wool, cotton or man-made textile materials (produced or manufactured in India) as described in Column (3) against the heading '58.06' in column (1), of the First Schedule to the said Act." 3.The Petitioner further states that the Special Commissioner and Commissioner of Commercial Taxes, Chennai, issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said Assessment Order records that the day book, ledger, purchase and sale bills were produced for assessment purposes. 5.Thereafter, it appears that a pre-revision notice dated 08.11.2004 was issued to the Petitioner stating that it is proposed to impose tax at 11% on the total turnover of Rs. 2,26,61,354 because the Petitioner had suppressed sales of woven labels and wantonly reported sales of narrow fabric. Consequently, it was stated that the tax liability, in this regard, would be Rs. 24,92,748 with penalty thereon at 150%, for wilful suppression, amounting to an aggregate sum of Rs. 37,39,122/-. 6.Based on the said pre-revision notice, a Re-assessment Order dated 28.02.2006 was issued whereby the tax liability at Rs. 24,92,748/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he invoices and delivery challans issued by the Petitioner in respect of the said narrow woven fabrics and pointed out as to how it is evident that the Petitioner was a dealer in narrow woven fabric in roll form. He further referred to the original Assessment Order and pointed that the assessing officer confirmed that these products are exempted from sales tax. He, thereafter, referred to the subsequent clarification dated 18.05.2001 and the erratum thereto dated 29.10.2001 whereby the Special Commissioner and Commissioner of Special Taxes (FAC), Chennai, clarified under Section 28A of the TNGST Act that the assessing officers would be instructed not to re-open settled cases and also follow clarification dated 13.02.2001 in pending cases. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials (produced or manufactured in India) as described in column (3) against the heading '58.06' in column (1) of the First Schedule to the Additional Duties of Excise Act were exempted from sales tax. 16.This position is confirmed by clarification dated 13.02.2001. Significantly, the clarification dated 13.02.2001 expressly stated as follows: " The clarification already issued in this office reference D.Dis.Acts Cell II/65536/2000 dated 13.10.2000 and D.Dis.Acts cell II/76081/2000 dated 30.10.2000, treating the product as falling under Entry 67 in Part-D of the First Schedule to the TNGST Act, 1959, taxable at 11% is hereby cancelled." Thereafter, by the subsequent clarification dated 18.05.2001 read with erratum dated 29.10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) 192 ELT 52 (the Pizzeria Fast Foods Case) held that a clarification under Section 28A of the TNGST Act is not binding on the assessing officer who acts in a quasi-judicial capacity, the aforesaid and other binding decisions of the Supreme Court were not brought to the notice of the Court. 19.When the above binding decisions are analysed, it is clear that clarifications issued under provisions of tax statutes, including Section 28A of the TNGST Act, are binding on assessing officers but the actual assessment order cannot be dictated through such clarifications. The decision in the Pizzeria Fast Foods Case is also capable of being reconciled on this basis. 20. In the instant case, it is evident that the re-assessment proceedings were ini ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
