MADRAS CEMENTS LTD Vs. COMMERCIAL TAX OFFICER III

JUDGEMENT

(1.) IT is undisputed that the assessee is entitled to deferral of sales tax liability in respect of the units set up by it at Alathiyur, Perambalur District. An agreement dated 3.9.98 has been entered into between the petitioner company and the State in this regard.

(2.) IT is not in dispute that the petitioner achieved the base level production referred to in that agreement in August 2000 and reached the base sales volume in September, 2000. IT is also not in dispute that the petitioner had paid sales tax along with additional sales tax on the sales effected by it before it reached those base levels. The State does not dispute the petitioner's right to deferral of it's liability for sales tax after it reached those base levels, in respect of the sales effected by it after having reached that level.

(3.) THE fact that the assessment is to be made at the end of the year is not of materiality so far as the right of the petitioner to secure deferral in terms of the agreement is concerned. THE agreement does not state that the petitioner has to wait till the year end so as to claim the right to have it's further tax liability deferred, even though it had reached the base volume much before the end of the year.