UNION TERRITORY OF PUDUCHERRY Vs. CASTROL INDIA LTD

JUDGEMENT

(1.) THIS Tax Case (Revision) is filed by the Revenue as against the order of the Sales Tax Appellate Tribunal, Puducherry dated 29.1.2014 for the assessment year 2003 -04.

(2.) THE short issue that arises for consideration in this Revision is whether the respondent/assessee is entitled to claim concessional tax at 3% as against 12% on the basis of G.O.Ms.No.20/2000/F2, Finance Department dated 27.5.2000.

(3.) THE assessment in this case relates to the assessment year 2003 -04. The respondent/assessee is a dealer in lubricants and grease. The assessee claimed concessional levy of tax at the rate of 3% on the sale of lubricants to the industries as input as per G.O.Ms.No.20/2000/F2, dated 27.5.2000. The Assessing Officer verified the invoices for the supply of lubricants to the industries by the assessee and rejected the claim made by the assessee holding that the lubricants sold by the assessee were not used as input by the industries, which bought the lubricants from the assessee, instead they used the same to lubricate the machine. Hence, the Assessing Officer held that the assessee is not entitled to the benefit of G.O.Ms.No.20/2000/F2 of Finance Department dated 27.5.2000 and assessed tax at the rate of 12%. Aggrieved by the same, the assessee filed an appeal before the Appellate Assistant Commissioner, who dismissed the appeal, thereby confirming the order of the Assessing Officer. As against the said order, the assessee preferred further appeal before the Puducherry Sales Tax Appellate Tribunal. The Tribunal accepting the contention of the assessee allowed the appeal holding that the manufacturing process of an industry starts from the operation of machine which needs lubricants to lubricate the machine and therefore lubricant is an input in terms of G.O.Ms.No.20/2000 F2 of Finance Department dated 27.5.2000. Therefore, the assessee is entitled for the benefit of concessional levy. Aggrieved by the same, the Revenue is before this Court.