JAYAM TRADERS Vs. TAMILNADU TAXATION SPECIAL TRIBUNAL

JUDGEMENT

(1.) PETITIONER sought a clarification from the Commissioner invoking section 28-A of the Tamil Nadu General Sales Tax Act, 1959. The clarification sought was with respect to the product manufactured by the assessee called "makka Poha".

(2.) IT was the assessee's contention that the product is not a food item as it is in raw form, and it required frying before it can be consumed. The assessee also claimed that the product is properly taxable under item No. 8 of Part B of the Third Schedule which deals with all products of millets, rice, flour, brokens and bran of cholam, cumbu, ragi, thinai, varagu, samai, kudiraivali, milo and maize. Those products mentioned in item No. 8 are exempted from the levy of tax under the Act.

(3.) THE case considered by the apex Court in that decision was one which arose under the provisions of the Income-tax Act, THE court was concerned with the effect of the circular issued by the CBDT, It was held by the apex Court that, section 119 of the Income-tax Act under which circular was issued by the Board, conferred power to tone down the rigour of the law and ensure a fair enforcement of its provisions, by issuing circulars in exercise of its statutory powers which are binding on the authorities in the administration of the Act. It was observed by the court that power given under section 119 was therefore a beneficial power for proper administration of fiscal law, so that undue hardship may not be caused to the assessee and fiscal laws may be correctly applied. THE object of the provision was to ensure a uniform and proper administration and application of the Income-tax Act.