KODAK INDIA LTD Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THE petitioner in both Writ Petitions, has challenged the assessment order and notice, dated 30.12.2005 for the assessment years 2000 -01 and 2001 -02 respectively and sought a direction to the Assessing Officer to levy tax at the rate of 8% on the compact discs sold by them, in accordance with the clarifications dated 27.08.1999 and 12.10.2000, issued by the Special Commissioner and Commissioner of Commercial Taxes, Chennai.

(2.) AS both the Writ Petitions deal with the common facts and law, they are taken up together and disposed of by a common order.

(3.) THE Special Commissioner and Commissioner of Commercial Taxes, Chennai, by letter dated 09.07.1999, clarified that 'Video Compact Disk' falls under the category of 'Compact Disc' in Entry 52 of Part 'D' of the First Schedule to the TNGST Act. Subsequently, by another clarification dated 27.08.1999, it was further clarified that the rate of tax on the sale of 'Video Compact Disk' falling under the category of 'Compact Disc', was reduced to 4% with effect from 01.04.1999, by G.Q.Ms. No. 72 , dated 27.03.1999 - Notification No. 11(1) CT/40/(d -3)/99. Thereafter, the Government issued orders in G.O. Ms. No. 11 CT, dated 23.01.2000, cancelling the earlier Government Order issued in G.O. Ms. No. 72, dated 27.03.1999 and the items mentioned In Entry 52 of Part 'D' of the First Schedule to the TNGST Act, were inserted in Entry 59 of Part 'C' of the First Schedule to the TNGST Act and thereafter, 'Compact disc' was liable to tax at the rate of 8% with effect from 23.01.2000, as per the clarification dated 27.08.1999, issued by the Special Commissioner and Commissioner of Commercial Taxes, Chennai.