GOLDEN REFINERIES PVT LTD Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) TAX Case Appeal No.239 of 2006 relates to the assessment year 2000-2001. TAX Case Appeal No.240 of 2006 relates to the year 1999-2000. Since the assessee and the appellant are one and the same and the questions of law raised are also one and the same, both the appeals are taken up for hearing and disposed of by this common order.

(2.) THE appeals were admitted on the following questions of law:-

(3.) MR.G.Rajagopal, learned Senior Counsel appearing for the appellant-assessee submitted that the notification was issued pursuant to the powers conferred under Section 17 of the TNGST Act exempting payment of tax for the commodity in question and the said notification came into force on 27.3.1998. By virtue of the said notification, if the total turnover is less than Rs.100 Crores, the exemption would be automatically available. That limit of Rs.100 Crores was increased by a further notification which came into force with effect from 1.4.1999. As the total turnovers in each assessment year in question do not exceed Rs.100 Crores, the levy of tax is unwarranted. The learned Senior Counsel would further submit that even on merits, the claim for exemption under Section 6(3-A) ought to have been granted. The learned Senior Counsel would submit that for the purpose of reduction of claim of exemption, the assessing officer as well as the other authorities had relied upon only the statements said to have been recorded from the General Manager, which statement had not only been retracted subsequently, but also the Income-tax authorities while considering the grievance of the appellant-assessee, held that the assessment cannot be based on the mere statement and accordingly allowed the appeal preferred as against the assessment orders.