LAWS(MAD)-2011-1-572

DIAMOND TRADERS Vs. STATE OF TAMIL NADU

Decided On January 27, 2011
DIAMOND TRADERS Appellant
V/S
STATE OF TAMIL NADU REP. BY THE COMMERCIAL TAX OFFICER Respondents

JUDGEMENT

(1.) The common substantial question of law that arises for consideration in these revision petitions is "whether the goods 'star anise seeds' (sombu) is liable to be taxed under Entry 28 of Part C of the First Schedule or under Entry 2 of Part B of the First Schedule to the TNGST Act, 1959.

(2.) The Petitioner in T.C.(R) Nos. 642 and 646 of 2006 is one and the same while T.C.(R) No. 643 of 2006 is by another Petitioner. Both the Petitioners are dealers in various items including the sale of 'star anise seeds'. The assessment year insofar as T.C. Nos. 642 and 646/2006 are concerned pertains to 1997-98 and 1998-99 respectively and T.C. No. 643 of 2006 pertains to 1998-1999. The Assessing Authority took the view that 'star anise seeds' is not one of the classified items in the Schedule and therefore, the same will fall under the residual Entry, namely, Entry 67 of Part D of the First Schedule, which is taxable @ 11%.

(3.) Aggrieved by the order of the Assessing Officer, the Petitioners preferred appeals before the Appellate Assistant Commissioner, who also confirmed the order of the Assessing Authority. On further appeals before the Tribunal, by the common order impugned, the Tribunal held that the goods 'star anise seeds' will fall under Entry 28A(iii) "country drugs", for which the rate of tax applicable is 8%.