STATE OF TAMIL NADU Vs. MADRAS REFINERIES LIMITED

JUDGEMENT

(1.) THIS tax revision case has been filed against the order of the Sales Tax Appellate Tribunal and involves consideration of a simple question as to whether the assessee is eligible for the concessional rate of tax provided under section 3(3) of the Tamil Nadu General Sales Tax Act. The assessee imports crude oil and refines it at the refinery at Manali in Tamil Nadu.

(2.) IN this case the assessee sold what are called lube base stocks and claimed concessional rate of tax on a turnover of Rs. 37, 78, 008.59 at 2 per cent. as against the general rate of tax of 7 per cent. There is no dispute that in case the rate of 2 per cent. was not applicable to the said sale, then the assessee would have to be taxed at the rate of 7 per cent. As regards the claim of concessional rate of tax at 2 per cent., the assessee stated that sales to the extent mentioned above were effected on the strength of form XVII declarations made by the purchasers, namely, INdian Oil Corporation, who had purchased these base oils and blended them to make lubricants. The said lubricants were sold to Esso Eastern INc., Caltex INdian Limited and Burmah Shell Oil Storage and Distributing Company of INdia Limited.

(3.) IT was stated on behalf of the State, the respondent before the Tribunal, that the sales tax authorities thought that they could reject the declarations merely on the ground that the lube base stock was not visually identifiable in the lubricants sold by the purchasing dealer and that, therefore, they had not subjected the declarations for proper scrutiny. As the Tribunal considered that the matter would have to be gone into by the Appellate Assistant Commissioner, it set aside the order of the Appellate Assistant Commissioner in so far as this point was concerned and remanded the matter so as to enable him to verify the declaration forms and allow the concessional rate if they were in order without going into the issue whether the declaration in form XVII by the purchasing dealer that it used the goods purchased as a "component part" is correct or not. IT is this order of the Sales Tax Appellate Tribunal dated 19th October, 1973, that is now under revision at the instance of the State of Tamil Nadu.