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TMI Blog2019 (10) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... nue in this regard. The proviso restricts such benefit to the sale of specified commodities, that is, High Speed Diesel Oil, Light Diesel Oil and Molasses, in respect of which, admittedly exemption has not been sought for by the petitioner. Thus there is no dispute on the factual position that all conditions as laid down by section 3(4) and the proviso thereunder have been complied with in this case. This issue has been considered and decided in a slew of decisions rendered by various Benches of this Court culminating in a decision of the First Bench of this Court in the case of M/S. SREE MURUGAN ENGINEERING PRODUCTS VERSUS THE COMMERCIAL TAX OFFICER [ 2006 (10) TMI 384 - MADRAS HIGH COURT] , wherein this Court has categorically held that the manner in which a purchasing dealer deals with the goods is not the concern of the seller and if they are violations/misuse of the Form that come to the notice of the Department, liability in such case can be fastened only upon the purchasing dealer and not the seller. The petitioner is entitled to the benefit of concessional rate of tax in terms of Section 3(3) of the Act - Petition allowed. - Writ Petition No.16218 of 2009 And M.P.No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orms pointing out that a mere four days had been granted for such rectification which was impossible since the dealers in question were spread far and wide over the entire State of Tamil Nadu. A copy of the letter was marked to the Joint Commissioner with a request for his intervention in the matter. The Joint Commissioner, vide letter dated 02.07.2009, instructed the Assessing Officer to grant time as sought for in line with the principles of natural justice. In gross violation of the instructions of the superior officer, the Assessing Authority has passed the impugned order of assessment dated 13.07.2009 confirming the pre-assessment proposal. 6. I have heard the learned counsel on both sides and studied the papers and case law carefully. 7. As far as the ground relating to the violation of principles of natural justice is concerned, such violation is writ large on the face of the record. Admittedly the petitioner, a Public Sector Undertaking, had responded to the pre-assessment proposal on 30.06.2009. While the objections itself contain a detailed exposition of the stand of the petitioner, it had sought some more time to furnish complete factual p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, packing or labeling in connection with such manufacture inside the Sate, for sale by him of any goods other than ethyl alcohol, absolute alcohol, methyl alcohol, rectified spirit, neutral spirit and denatured spirit, goods falling under Part A of the Third Schedule, goods falling under item 1 of the Sixth Schedule and arrack, shall be at the rate of only three percent on the turnover relating to such sale. Provided that the provisions of this sub-section shall not apply to (a) any sale of high speed diesel oil, light diesel oil and molasses ; and ((a) any sale of goods falling under items 1 and 2 in Part F and item 2 in part I of the said schedule; and (b) any sale, unless the dealer selling such goods furnishes to the assessing authority in the prescribed manner and within the prescribed period, a declaration duly filled in and signed by the dealer to whom the goods are sold containing the prescribed particulars in the prescribed form obtained from the prescribed authority; Provided further that any dealer who, after purchasing the goods in respect of which he had furnished any declarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, is not automatic but would have to be tested in the light of the specific statutory provisions. 13. The relevant provisions of the KGST are extracted below: 5. Levy of tax on sale or purchase of goods: - .......... (3) (i) Notwithstanding anything contained in sub-section (1) or sub section (2), the tax payable by a dealer in respect of any sale of the goods mentioned in the First Schedule by such dealer to another for use by the latter as component part of any other goods mentioned in the said Schedule, which he intends to manufacture inside the State for sale, shall be at the rate of only one per cent on the taxable turnover relating to such sale: PROVIDED that the provisions of sub-section shall not apply to any sale unless the dealer selling the goods furnishes to the assessing authority in the prescribed manner a declaration duly filled in and signed by the dealer to whom the goods are sold containing the prescribed particulars in the prescribed form. Provided further that the goods sold are capable of being used as component part of any of the goods mentioned in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f specified commodities, that is, High Speed Diesel Oil, Light Diesel Oil and Molasses, in respect of which, admittedly exemption has not been sought for by the petitioner. Thus there is no dispute on the factual position that all conditions as laid down by section 3(4) and the proviso thereunder have been complied with in this case. 18. The case sought to be made out by the Assessing Authority is that the furnishing of the statutory Declaration by itself would not entitle the petitioner to concessional rate and the burden lies heavy upon it to establish that the goods sold have, in fact, been utilised by the purchasing industry, in manufacture. This issue has been considered and decided in a slew of decisions rendered by various Benches of this Court culminating in a decision of the First Bench of this Court in the case of Sree Murugan Engineering Products V. Commercial Tax Officer, Coimbatore (148 STC 419), rendered after considering earlier decisions of this Court in the case of State of Tamil Nadu V. Madras Petrochemicals Ltd. (89 STC 438), Premier Electro-Mechanical Fabricators V. State of Madras (22 STC 269) and State of Tamil Nadu V. Seema Udyog (W.P.No.10610 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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