STATE OF TAMIL NADU Vs. VOLTAS LTD

JUDGEMENT

(1.) IN this revision petition, 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 section 8 read with item 3 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 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 tractors. For the assessment year 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, and 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, under section 8 read with item 3 of the Third Schedule, they are exempt. The Appellate Assistant Commissioner 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 evident to show that they have paid excise duty under the Medicinal and Toilet Preparations (Excise Duties) 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 (Excise Duties) Act, 1955, in the State of Maharashtra. We have held today in Orient Pharam Private Ltd. v. Government of Tamil Nadu [[1976] 37 S.T.C. 437] (T.C. No. 65 of 1973, etc.) and State of Tamil Nadu v. Calcutta Chemical Co. Ltd. [[1976] 37 S.T.C. 443] (T.C. No. 120 of 1970, etc.), that such goods are not liable for exemption under section 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 (Excise Duties) Act, 1955, does not make the goods exempt from the tax under section 8 read with item 3 of the 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.