STATE OF TAMIL NADU Vs. THIRUVALARGAL VOLTAS LIMITED

JUDGEMENT

(1.) IN this revision, two points are involved. One is the right of the assessee to claim exemption on a turnover of Rs. 45, 325-77 relating to the sale of medicinal preparations containing alcohol under S. 8 r/w item 3 of the Third Schedule to the Tamil Nadu General Sales Tax Rules, 1959 (hereinafter referred to as 'the Act'). The other is the claim of exclusion from the taxable turnover of a sum of Rs. 33, 360/-, representing the Bombay Sales-tax paid in Maharashtra State by the assessee on their purchase of the tractors. For the asst. yr. 1966-67, the respondent assessee submitted a total taxable turnover of Rs. 4, 18, 58, 543.98 and Rs. 2, 68, 03, 833.90 respectively. He had claimed exemption to an extent of Rs. 4, 97, 450.74 on the ground that they represented sales of medicinal preparations containing alcohol and, therefore, they are exempt. The AAC gave a relief except to an extent of Rs. 45, 325.77. The rejection in respect of this amount was on the ground that there was no proof of payment of excise duty on this sum of Rs. 45, 325.77 on the entire quantity, and not merely on the ingredients. When this matter came up before the Tribunal the assessee produced evidence to show that they have paid excise duty under the Medicinal and Toilet Preparations (ED) Act, 1955 on their entire quantity. Therefore, the Tribunal allowed this sum of Rs. 45, 325.77 also.

(2.) IT is seen from the evidence that the assessee had paid duty under the Medicinal and Toilet Preparations (ED) Act, 1955, in the State of Maharashtra. We have held today T. C. 65 of 1973 etc. 1976 CTR(Mad) 1 & T. C. No. 120 of 1970 etc. that such goods are not liable for exemption under S. 8, both on the ground that the duty is not paid in this State and also on the ground that the payment of duty under the Medicinal and Toilet Preparations (ED) Act, 1955, does not make the goods exempt from the tax under S. 8 r/w item 3 of Third Schedule. Therefore, the revision petition filed by the Revenue so far as it related to the exemption of Rs. 45, 325-77 has to be allowed.

(3.) ACCORDINGLY, the order of the Tribunal is set aside in so far as it related to the turnover of Rs. 45, 325-77 related to the sale of the medicinal and toilet preparations, and in other respects, the order of the Tribunal is confirmed. The revision is accordingly partly allowed. There will be no order as to costs.