PIONEER AGRO INDUSTRY Vs. COMMERCIAL TAX OFFICER AVINASHI

JUDGEMENT

(1.) THE petitioner-Industry is engaged in manufacture and sales of Coconut Shell Powder and registered as a Dealer under the provisions of the Tamil nadu General Sales Tax Act, 1959 and Central Sales Tax, 1956.

(2.) THE petitioner has further submitted that the products of the petitioner, namely, Coconut Shell Powder was classified in Entry No.70 of Part B of Schedule 1 of the Tamil nadu General Sales Tax Act, 1959 from 1.4.1994 to 16.7.1996 and Coconut Shell Powder is nothing but a crushed form of coconut shell chips and the said Entry talks about Coconut shell and its chips. Subsequently, the Coconut shell and its chips were included under Entry No.75 of Part B of Schedule III with effect from 5.3.1997. With effect from 27.03.2003, the Coconut shell and its chips were brought under Entry No.45(ii) of Schedule III and they are taxable. In the clarifications issued by the Commissioner of Commercial Taxes, Coconut Shell and its chips were exempted and that they may not be assessed to tax. Later on, the Commissioner of Commercial Taxes in his further clarification No.118/2004 Acts Cell/63301/2003 dated 22.4.2004 clarified that Coconut Shell Powder is taxable at 12% under the residuary entry No. 40 of Part D of Schedule 1 to the TNGST Act, which was again reiterated by his orders dated 6.12.2004, 12.1.2005 and 29.9.2006. THE petitioner has submitted the monthly returns for the Assessment Years 2004-2005 and 2005-2006. Tamil nadu General Sales Tax Act, 1959 was amended by Tamil Nadu Act No.37 of 2006 by inserting 12-C to the Act and a rule 15(5)(E) was also inserted in the Tamil nadu General Sales Tax Rules, 1959 by G.O.Ms.No.172, CT&R (81) dated 23.12.2006.

(3.) LEARNED counsel for the petitioner further submitted that the petitioner has not attempted to conceal or suppress the tax liability and the petitioner has disclosed the entire turnover for the above assessment period.