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TMI Blog2019 (12) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 16(1) of the Tamil Nadu General Sales Tax Act, 1959 (in short 'Act') dated 06.06.2001, whereby the learned Assessing Authority viz., Commercial Tax Officer, Salem Rural, Salem sought to initiate reassessment proceedings for 1999-2000 for seeking to bring to tax the alleged escaped turnover of polyster - cotton blended yarn by the Assessee during the said year, as according to the said Authority, the Assessee has violated the condition of the Notification in G.O.Ms.No.111, Commercial Taxes and Religious Endowments, dated 7th April 1998, by making the consignment/branch transfers of the goods during the year of cotton yarn to the extent of Rs. 1,56,23,382.32. 2.Assailing the same, the learned counsel for the petitioners Mr.S.Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused, and the following clarification on rate of tax is issued:- Man made Staple Fibre Yarn falls under Entry No.27 in Part-C of the First Schedule, taxable at 8%. However, the rate of tax was reduced to 2% as the sale of man made staple fibre yarn by any dealer who does not have any branch transfer or consignment transfer outside the State during the year as per G.O.Ms.No.103/CT & RE Dated 7.4.98 Notn.No.II(i)/CT & RE/ 43(d-2)98. Gazette Dated 7.4.98 as amended by G.O.Ms.No.60 CT Dated 17.3.99 - Notification No.II(i)/CT/40(a-3)/99 Gazette dated 17.3.99. The petitioners have effected only local sales and interstate sales of man made staple fibre yarn from 1.4.99. The Stock transfers/Consignment sales of cotton yarn outside the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation II(i)/CTRE/43(d-7)/98 dt.7.4.98 and Notification No.II(i)/CTRE/40(a-4)/99 dt. 17.03.99 the said goods is taxable at reduced rate of 2% provided the dealer does not have any consignment transfer during the year. However the dealer has effected consignment of cotton yarn for Rs. 1,56,23,382.32 during 1999-2000. Therefore the condition prescribed has been violated by the dealer which makes them ineligible for the concessional rate of tax granted by the said notification. As the goods is taxable at 8% under entry 27 under part 'C' of the first schedule to the TNGST Act. It is taxable at 10% without 'C' form declaration. The dealers have not interest produced the said declaration for the concessional rate of tax at 4%." A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es yarn on the Assessee in terms of the said Notification and the said issue stood concluded by the Clarification issued by the learned Commissioner under Section 28-A of the Act on 21.10.1999. Therefore, in our opinion, it was not open to the Assessing Authority to invoke his reassessment powers conferred under Section 16(1) of the Act on the same set of facts. Admittedly, there were no different facts available before the Assessing Authority and the same consignment transfer of cotton yarn to the extent of Rs. 1,56,23,382.32 was sought to be made the basis for impugned reassessment proceedings under Section 16(1) of the Act, whereas the said facts had already been considered by the earlier Assessing Authority for the very same period on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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