TVL SHYAM AIR FRIDGE Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) Tax Case (Revision) No.186 of 2009, is directed against the order made in TA No.230 of 2008 dated 27.07.2009 on the file of the Tamilnadu Sales Tax Appellate Tribunal (Additional Bench), Chennai.

(2.) Facts as deduced from the material on record are that Tvl.Shyam Air Fridge, Vellore, the revision petitioner, during the assessment year 2004-05, reported a total and taxable turnover of Rs.56,47,042/- under the TNGST Act. The Deputy Commissioner (CT), Vellore Division, Vellore, while finalizing the assessment had treated the contract receipt of Rs.3,74,000/- as sale of Split Air Conditioner and subjected the same to tax at 20% instead of 4% in his proceedings in TNGST 4201028/04-05 dated 28.04.2006. The respondent also levied penalty under Section 12(3)(b) of the TNGST Act amounting to Rs.94,248/-.

(3.) Aggrieved with the orders of the Respondent, the petitioner preferred an appeal before the Appellate Assistant Commissioner (CT) Vellore, disputing the contract receipt and the penalty. The Appellate Authority in his proceedings in A.P.No.202 of 2006 dated 26.10.2006 had accepted the contentions of the petitioner and hold that the transaction is a works contract and assessed the same under Section 3-B of the TNGST Act by refixing the taxable turnover and also refixed the penalty. According to the petitioner, the Appellate Authority had not deleted the penalty in toto even though the facts and circumstances does not warrant any penalty as per the explanation added to Section 12(3) (b) of the TNGST Act.