IWL INDIA LIMITED Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) BY notice dated July 31, 2002 the second respondent pointing out certain violations thereunder, proposed to recover a sum of Rs. 217 lakhs and required the petitioner to repay the said deferral amount of Rs. 217 lakhs already availed immediately along with interest under Section 24(3) of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as 'the Act'), even though there was no dispute as to the eligibility of the petitioner to avail the deferral of sales tax as per the Government Order in G.O. Ms. No. 500 Industries (M.I.G -II) dated May 14,1990 read with the eligibility certificate No. 11 dated February 18, 1991 issued by the State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT), and the statutory notification issued by the Government in that regard by G.O.P. No. 92, Commercial Taxes and Religious Endowments Department dated February 22, 1991 under Section 17 of the Act.

(2.) AGGRIEVED by the said demand notice, the petitioner moved the Special Tribunal in O.P. No. 805 of 2002 seeking to quash the said notice dated July 31, 2002 pointing out that the benefit of deferral of sales tax conferred under G.O. Ms. No. 500 Industries (M.I.G -II) dated May 14,1990 read with the eligibility certificate No. 11 dated February 18, 1991 and the statutory notification issued by the Government in that regard by G.O.P. No. 92, Commercial Taxes and Religious Endowments Department dated February 22, 1991 under Section 17 of the Act, is denied to the petitioner on the ground that they are not entitled for deferral for all products manufactured by their unit, as according to the respondents, in the preamble portion of the eligibility certificate, it refers only the manufacture of 'water proofing membrane' in the petitioner unit, but not 'primer', which is also con -cededly a product manufactured by the petitioner unit and secondly, the denial of the said benefits is in view of the change of the name of the petitioner from 'Integrated Water Proofings Limited' to its abbreviated form 'I.W.L. India Limited.', which also got notified to the Registrar of Companies and changed in the relevant records, both in the Registrar of Companies as well as the statutory authorities.

(3.) MR . Natarajan, learned Senior Counsel appearing for the petitioner, inviting our attention to the G.O. Ms. No. 500 Industries (M.I.G -II) dated May 14, 1990 as well as the eligibility certificate and the statutory notification issued by the Government in that regard by G.O.P. No. 92, Commercial Taxes and Religious Endowments Department dated February 22,1991 under Section 17 of the Act, contends that the eligibility certificate as well as the notification issued under Section 17 does not restrict the benefit of the deferral of the sales tax only with regard to the manufacture of 'water proofing membrane' but confer the said benefit to all the products that are manufactured by the petitioner unit and in this regard, reference was made to Clause 4(a) of the eligibility certificate, which reads thus: 4. The actual amount deferred shall however, be the least of the amounts mentioned in (a) ; (b) and (c) below: (a) the sum of (i) Sales tax, surcharge and additional surcharge liability to Government for the period from August 1, 1990 to July 31, 1999 under the provisions of the TNGST Act, 1959 on the sales of finished goods manufactured by the unit at Alamathi Village, Ponneri taluk, Chingleput District. (ii) Net tax paid (less set -off admissible, if any) under the provisions of the TNGST Act, 1959, on the purchase of raw material. (iii) Central sales tax and surcharge on Central sales tax liability to Government under the provisions of the Central Sales Tax (CST) Act, 1956 on the sales of finished goods manufactured by the unit in Tamil Nadu for the period as in (i) above.