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TMI Blog2020 (2) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... availing taxable turnover in the present case. Whether the Base Sales Volume comprises only local sales taxable under the TNGST Act or would include the Global Sales made by the Assessee viz., Branch transfers, interstate sales and even Export Sales. Since there was no clarity with regard to the same, in the Eligibility Certificate issued to the petitioner, the Revenue has taken a different stand in the Notice dated 29.09.2009 and which resulted in this litigation. The clarity about the inclusion of the sales which are not taxable under the provisions of the TNGST Act to be taken as Base Sales Volume or not, it ought to have been discussed even before issuance of the Eligibility Certificate itself, so that any confusion with regard to avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (MIG.II) Department, dated 14.05.1990. 2.The controversy in brief revolves around the interpretation of the terms 'Base Production Volume and the Base Sales Volume as eligibility for claiming the sales tax by the Assessee'. 3.In another G.O.Ms.No.119, Commercial Taxes and Religious Endowments Department, dated 13.04.1994 issued by the State Government, the State Government giving illustration of the Company of M/s.Ashok Leyland Limited pointed out that the criteria of Base Production Volume and Base Sales Volume may be claimed deferral of sales tax, as such falling under the said G.O.Ms.No.500 dated 14.05.1990 to protect the past revenue and only the surplus thereafter may be deferred for payment for a period of 10 years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and the Base Sales Volume will have to be worked out and incorporated in the eligibility certificates at the time of issue by SIPCOT and District Industries Centres. 4.The Eligibility Certificate (E.C.) was issued to the appellant/ petitioner by the Competent Body viz., State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) on 28.12.1999 and Clause 5.3 of that Eligibility Certificate computed the benefit of deferral available to Assessee on the following basis: 5.2 The unit shall enter into an agreement with the Assistant Commissioner (Commercial Taxes) concerned as per terms and conditions stipulated by that department. 5.3 The company is eligible for deferral of sales tax only on the increased volume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed this Court by filing the intra-Court Appeals before us. 7.Having heard the learned counsel for the parties and upon perusal of the materials placed before us, we are of the opinion that while no valid exception can be taken to the Clause 5.3 of the Eligibility Certificate issued in terms of the G.O.Ms.No.119 dated 13.04.1994 read with original notification G.O.Ms.No.500 dated 14.05.1990, but they seems to have genuine confusion which is arising on the computation of the Base Production Volume/Base Sales Volume on availing taxable turnover in the present case. Whether the Base Sales Volume comprises only local sales taxable under the TNGST Act or would include the Global Sales made by the Assessee viz., Branch transfers, interstate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estions of interpretation of terms of the Scheme itself cannot be undertaken by this Court in its extraordinary jurisdiction conferred under Article 226 of the Constitution of India. We are also constrained to observe that after long lapse of the period right from the Eligibility Certificate issued in favour of the petitioner form the year 1999 by now almost 20 years have passed by and in past 10 years even the deferral amount of the surplus revenue over and above the Base Turnover was required to be collected by the Revenue Department. But we are informed by the learned counsel for the Appellant/Assessee that tax part of the deferral sum has been paid by the Assessee, but however the issue of interest etc. remains pending. 9.We are th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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