NATARAJA STORES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The assessee is in appeal against the order passed by the joint Commissioner (C. T.) II, Madras , dated January 29, 1982, in exercise of the suo motu powers of revision. Briefly stated the facts are that the assessing officer while finally assessing the total and taxable turnover of the assessee for the assessment year 1976-77, at Rs. 24, 88, 312 and Rs. 21, 36, 509 respectively, disallowed the claim of exemption of a turnover of Rs. 65, 258 relating to the sales of colour pencils taxed at 4 per cent multi-point in addition to certain other items. The exemption was claimed by the assessee on the basis of a notification of the Government in No. 11 (1)/ctre/139 (a)176 dated March 19, 1976. On appeal, the Appellate Assistant Commissioner held the assessee eligible for the exemption on the basis of the said notification dated March 19, 1976. The Joint Commissioner however proposed to revise the order made by the Appellate Assistant Commissioner being of the view that colour pencils were not covered by the notification dated March 19, 1976. Accordingly, notice was issued to the assessee and after inviting his objections and hearing the parties, the Joint Commissioner by the order impugned in this tax appeal, set aside the order of the Appellate Assistant Commissioner and restored that of the assessing authority. Whether colour pencils would also get the benefit of the exemption in Government Notification dated March 19, 1976, is the only question before us. It is not necessary for us to advert to the wordings of the notification dated March 19, 1976 or the reasonings given by the Joint commissioner to hold that the colour pencils would not be included in the said notification because we find that the Board by its letter No. A-2. 1660/76 dated April 19, 1976, clarified that the exemption with regard to the writing pencils would also be applicable to copying pencils and colour pencils. In view of the clarification by the Board, the order of the Appellate Assistant commissioner holding that the assessee was eligible for exemption on the sale of colour pencils is unexceptionable. The Joint Commissioner fell in error in revising the same. The order of the Joint Commissioner consequently cannot be sustained and is hereby set aside and that of the Appellate Assistant commissioner restored. No costs. .