COLOUR SENSE Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioner has challenged the order of assessment order 2005-2006. THE firm reported a total turn over of Rs.21,34,430.80 taxable at 3% and the assessee produced several records in support of the returns and requested the respondent to accept the same and finalize the assessment for 2005-2006.

(2.) THE petitioner has further submitted that since they are in the business of printing, they exercised their option under Sec.3-G of the TNGST Act 1959 for compounded rate of tax at 3% and submitted a letter to the Assistant Commercial Tax Officer on 10.1.2005. It is the further case of the petitioner that for assessment year 2005-2006, they have submitted monthly returns before the respondent by giving details of turn over, with the payment of Sales-tax at 3% compounded for the entire sale value and the same was acknowledged by the respondent. Inspite of the option under section 3-G of the TNGST Act 1959, on the monthly returns submitted by the assessee, the respondent issued a pre-assessment notice and unilaterally proposed to assess the entire turnover relating to the sale of printed materials under section 3(1) of the TNGST Act instead of 3-G of the TNGST Act at the rate of 10% instead of compounded rate of 3% on a turn over of Rs.14,26,163/-. THEy further submitted that the petitioners are eligible for exemption in respect of turnover of Rs.6.06.205/- being sale of reading materials.

(3.) LEARNED counsel for the petitioner submitted that the assessment order dated 30.3.2007 is contrary to the provisions of Sec.3-G of the TNGST Act 1959 and that the respondent has failed to consider that the petitioner is engaged in printing business.