ARULMIGHU MARIAMMAN THIRUKOVIL Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The writ petitions are directed against the final assessment order passed by the first respondent in R.C.45/2010/B1 dated 17.10.2014. By way of the said order, the first respondent has held that the petitioner temple involved in manufacturing activities of converting gold jewels and ornaments into gold biscuits for the purpose of sale and involved in trade activities of gold biscuit and therefore, the petitioner is liable to pay tax. This order is under challenge on the ground that this temple is not a dealer and not doing any business as defined in Sections 2 (10), 2 (12), 2 (15) of the Tamil Nadu Value Added Tax Act, 2006 [hereinafter referred to as "the TNVAT Act"], by way of filing the writ petitions.

(2.) The petitioner is a Temple under the control of Government through Hindu Religious and Charitable Endowments Department (HR & CE). The income and expenditure of the Temple is controlled by the Head of the Department, namely, the Commissioner of HR & CE Department. The income of the Temple is derived through the offerings of the devotees through Hundials. The offerings are in the form of cash, gold, silver, and cattles etc. Depending on the decision made by the Government, the Head of the Department, as per rules, the gold and silver received through Hundials are also utilized for the requirements of other needy Temples. In one such transaction, as per the directions of the Head of the Department, gold received by the petitioner - Temple was sent to five other Temples for making golden chariot and gold plating on the surface of Vimanam. This was considered as a sale by the respondents and a pre-assessment notice dated 18.09.2013 demanding Rs. 6,22,200/- as tax, was issued to the petitioner. The pre-assessment notice was issued on the basis of a newspaper report and the Temple gave its reply to the notice on 03.10.2013 and 20.03.2014. However, without appreciating the reply and the legal aspects set out therein, the final assessment order dated 17.10.2014 came to be passed by the respondents. Simultaneously, recovery proceedings under the Revenue Recovery Act was also initiated. Challenging the said orders, the present writ petitions are filed.

(3.) The learned counsel appearing for the petitioner would contend that the income of the temple is derived mainly from the offerings of the devotees through Hundials. The devotees offer by way of cash, silver, gold and other form of materials. Small gold articles gifted by the devotees are melted and utilized for various purposes in the temple. The usage of gold is under the control of the Government. As per the decision taken by the Government, the gold is used for making Car, Gopuram (Tower) and Kalasam at various temples under the control of Commissioner of Hindu Religious and Charitable Endowments Board. The main activities of the temple is only to propagate religion and the temple is doing charitable activities like Annadhanam, maintaining cleanliness, hygiene and other facilities like purifying water, etc. for the facility of the devotees. The temple has not involved in any business, more particularly, with an intent to conduct trade or business for making profit.