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TMI Blog2025 (1) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... o Section 8 of the CST Act. Conclusion - Since there is no notification issued under Section 8(5) of the CST Act, the conditions of Section 8(5) of the CST Act will not apply to the facts of the case. The petitioner is entitled to the benefit of exemption under Notification No.II(1)/CTR/30(a-2)/2007 - Petition allowed. - Honourable Mr. Justice C. Saravanan For the Petitioner : Mr. G. Mohammed Aseef For the Respondent : Mr. C. Harsharaj Additional Government Pleader ORDER In this Writ Petition, the petitioner has challenged the Impugned Revision Order dated 22.04.2022 in CST No.949508/2013-2014 dated 22.04.2022. 2. By the Impugned Revision Order, the respondent has confirmed the proposal in notice dated 22.02.2019. 3. The Impugned Revision Order is reproduced below:- Tvl.K.Natesan Proprietor, Tvl.Vadivelan Phyto Products, 84/10, N7D, Narayanasamy Street, Attur 636 102, have reported a total and taxable turnover of Rs. 2,34,00,635.00/- and Rs. 2,23,00,635.00/- respectively for the year 2013-2014 under the Central Sales Tax Act, 1956 in this office proceedings in the reference cited. The turnover reported under CST Acts as follows:- Total Turnover determined : Rs. 2,23,00,635.00/- T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner is engaged in sale of Gloriosa Superba (செங்காந்தள் மலா) and that the item in question was exempted under Notification No.II(1)/CTR/30(a-2)/2007 (TNGG Extraordinary/March 23, 2007 [G.O.Ms.No.79, Commercial Taxes and Registration (B2) Department] dated 23.03.2007 and therefore the Impugned Demand confirmed by the respondent was unjustified and is therefore liable to be interfered with. 5. The petitioner has placed reliance on the decision of this Court in M/s.Appasamy Associates, Represented by its Partner Vs. The Commissioner of Commercial Taxes, Chennai and others vide Order dated 15.07.2021 in W.P.Nos.4355 of 2008 etc batch. 6. It is submitted that the product in question is exempted in terms of Sl.No.21 and Sl.No.26 to the above Notification and therefore, there is no merits in the Impugned Revision Order. 7. On the other hand, the learned Additional Government Pleader for the respondent would submit that as per Sub-Section 5 to Section 8 of the CST Act, the State Government has to issue a specific notification to exempt a dealer from payment of tax. It is submitted that the above condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of collection at the stage of removal is devised for the sake of convenience. 13. The Court dealt with Special Excise Duty. It held that the idea of collection at the stage of removal is devised for the sake of convenience. It is not as if the levy is at the stage of removal. It is only the collection that is done at the stage of removal. Admittedly, the special excise duty is an independent duty of excise separate and distinct from the duties of excise levied by the Central Excises and Salt Act, 1944. This levy came into effect only on and from March 1, 1978 which means that the goods produced prior to that date were not subject to such levy. If that is so, the levy cannot attach nor can it be realised because such goods are removed on or after March 1, 1978. 14. Therefore, Special Excise duty was levied only for a brief period between 01.03.1978 and 28.02.1979. Paragraph 5 from the decision of the Hon'ble Supreme Court in Collector of Central Excise, Hyderabad Vs. Vazir Sultan Tobacco Co. Ltd., 1996 (83) E.L.T.3(S.C) is reproduced below:- 5. We are inclined to agree with Sri Sobarjee. Entry 84 of List-I of the Seventh Schedule to the Constitution empowers the Parliament to m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (TNVAT) Act, 2006 and under Sections 8(2) and 9(2) of the CST Act, 1956. 18. Under Section 9(2) of the CST Act, subject to the other provisions of the Act and the Rules made thereunder, the authorities who are empowered to assess, reassess, collect and enforce payment of any tax under the General Sales Tax law of the appropriate State shall, on behalf of the Government of India, assess, re-assess, collect and enforce payment of tax, including any [interest or penalty], payable by a dealer under the Act as if the tax or [interest or penalty] payable by such a dealer under the Act is a tax or [Interest or penalty] payable under the General Sales Tax law of the State, and for this purpose they may exercise all or any of the powers they have under the General Sales Tax law of the State, and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State, whichever is lower: (2) The 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 interstate trade or commerce not falling within Sub-Section (1), shall be at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State. Provided that the Central Government may, by notification in the Official Gazette, reduce the rate of tax under this Sub-Section. Explanation.- For the purposes of this Sub-Section, a dealer shall be deemed to be a dealer liable to pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so liable under that law. 23. As per Sub-Section (2) to Section 8 of the CST Act, the 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 interstate trade or commerce not falling within Sub-Section (1), shall be at the rate applicable to the sale or purchase of such goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods furnishes to the prescribed authority referred to in Sub-Section (4), a declaration in the prescribed manner on the prescribed form obtained from the authority specified by the Central Government under Sub-Section (6), duly filled in and signed by the registered dealer to whom such goods are sold. 28. Thus, as per Sub-Section (5) to Section 8 of the CST Act, the State Government has to issue a notification which should specify the conditions. 29. In this case, no notification has been issued under Sub-Section (5) to Section 8 of the CST Act which has been brought to the attention of the Court. 30. Unless a specific notification has been issued under Sub-Section (5) to Section 8 of the CST Act, only General Notification issued under the Tamil Nadu Value Added Tax (TNVAT) Act, 2006 will apply to the interstate transactions by applying Sub-Section (2) to Section 8 of the CST Act. 31. Since there is no notification issued under Section 8(5) of the CST Act, the conditions of Section 8(5) of the CST Act will not apply to the facts of the case. 32. Therefore, the demand proposed and confirmed in the Impugned Revision Order 22.04.2022 is liable to be interfered with. 33. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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