P M ENTERPRISES Vs. COMMERCIAL TAX OFFICER CHENNAI

JUDGEMENT

(1.) HEARD Mr.A.Thiagarajan, learned senior counsel for the petitioner and Mr.R.Mahadevan, learned Additional Government Pleader appearing for the respondents, who has also filed counter affidavit on behalf of the first respondent.

(2.) IN this writ petition, the order which is challenged is the proposed revision dated 15.5.2009 passed by the first respondent by which the first respondent by invoking the powers under Section 16(1) of the Tamil Nadu General Sales Tax Act, 1959 (for brevity "the Act") has reopened his earlier decision dated 5.6.2007 accepting that the business of the petitioner is that of a dealer in 'Gutka' which is classified as Item No.2 in Part A of Third Schedule and granting tax exemption.

(3.) AS correctly submitted by the learned senior counsel for the petitioner, while the first respondent on earlier occasion on 5.6.2007 has clearly admitted the petitioner as a dealer in 'Gutka', the notice purported to have been issued under Section 16(1) of the Act does not reveal that based on materials or an appraisal of certain records the first respondent came to know that what is prepared by the petitioner is 'Pan Masala' but sold as 'Gutka' by printing the name as 'Gutka'. In the absence of such reason exposed in the notice issued by the first respondent while exercising the power conferred under Section 16(1) of the Act, it is certainly not possible for the petitioner to explain its case to the effect that what is prepared by it is only 'Gutka' and not 'Pan Masala'.