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TMI Blog2019 (10) TMI 1319X X X X Extracts X X X X X X X X Extracts X X X X ..... e taken up for final disposal. 2.The petitioner in all the writ petitions is a dealer in Fried Gram and he filed his returns under the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred as TNVAT Act) and Central Sales Tax Act, 1956 (hereinafter referred as CST Act). The petitioner during the course of his business effect export sales and inter-State sales of Fried Gram. According to the petitioner, as per Entry 68 of Schedule 4 of the TNVAT Act, Fried Grams are exempted quantity and so, tax liability is nil. Therefore, for the local sales, he need not pay any tax. Sofar as inter- State sales is concerned, it is covered by CST Act. Section 8 of CST Act deals with rates of tax and sales, during the course of inter-State Trade or Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re exempt from tax under VAT Act, 2006, that as such, that because of the conditional exemption, the inter-state sales are also liable for exemption, that inter-state sales of chappal which are also coming under conditional clause are exempt from tax according to the 'instruction of the Commissioner of Commercial Taxes, Chennai in Acts Cell- II 13559 dated 15.06.2018 and hence, on the same analogy the interstate sales of fried gram has to be given exemption, that apart from the above, there are also other judgments which prohibit tax liability on inter-state sales of such commodity that are coming under conditional clause and hence, that the proposal to bring them to tax might be dropped. There is specific clarification of the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Section 8 must receive similar interpretation. Further, under sub-section (2) of section, it is provided that tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates to the sale of goods in the course of inter-State under the sales tax law of that State. In contrast to sub-section (1), thus sub- section (2) does not provide for the lower of the two tax rates, two per cent, as prescribed for inter-State sales generally or the rate that may be prescribed by the local sales tax law. It prescribes only one rate of tax, namely, that which is applicable to the sale or purchase of goods in question within the State on the local sales. There is therefore, no warrant to interpret the expression "rate applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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