PROMECH INDUSTRIES Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) These Writ Appeals are preferred against the order granting conditional stay of recovery that Appellant to deposit 25% of the demand on or before 30.03.2012.

(2.) Appellant has purchased electric and electronic goods from other States and also from registered dealers within the State and purchases of Camera, Sensors, Lens and IC etc. from other countries and claimed input tax credit on the purchases effected from registered dealers within the State. Appellant assembled the above goods and manufactured "Grain Color Sorter Machine" and "Paddy Moisture Machine" according to the requirements of the customers. Earlier on 03.02.2010, pre-revision notice was issued proposing to collect VAT at 12.5% on the total turnover. Challenging the pre-revision notice, Appellant filed W.P.(MD) Nos.4675 to 4677 of 2010 on the ground that Appellant's machineries are "Capital Goods" as defined under Section 2(11) of the Tamil Nadu Value Added Tax Act, 2006 and that only 4% is leviable and not 12.5%. Pointing that Writ Petitions have been filed challenging the pre-revision notice, by the order dated 08.04.2010, Writ Petitions were disposed of with a direction to the Appellant to offer their explanations on the pre-revision notice issued to them.

(3.) Subsequently, the Assistant Commissioner (CT)(FAC), Madurai Rural (South), Madurai has passed the order dated 22.11.2010 holding that the sales effected by the Assessee (Appellant) are only "Machineries" and "not capital goods" which are liable to be assessed at 12.5% as per item No.69 of Part-C of First Schedule under Section 3(2) of TN VAT Act, 2006 and called upon the Appellant to pay balance tax due. Challenging the assessment order for the years - 2006-07, 2007-08 and 2008-09, Appellant filed W.P.(MD) No.14628 to 14630 of 2010. By the order dated 16.12.2010, the said Writ Petition was disposed of with a direction to the Respondents to consider the objections filed by the Appellant and also to afford personal hearing before passing final order.