CHAMADHI TRADES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The petitioner is a dealer of food items, matches, toffees, biscuits, chips, etc., and an assessee under the respondent holding VAT Registration No. TIN 33825043301. The dealer has submitted the returns under self-assessment basis for the assessment year 2008-2009. On the basis of VAT audit conducted at the place of business of the petitioner on 19-11-2009, the respondent issued a revision notice dated 10-1-2011. The respondent has found that the chips sold by the petitioner with a brand name for a sum of Rs. 7,00,512.00 from 17-10-2008 to 18-11-2009 attracts 12.5% tax as per Part C of the First Schedule under the Tamil Nadu Value Added Tax Act, 2006 [hereinafter referred to as 'the TNVAT Act'], whereas, he has paid only 4% tax and hence, proposed to revise the order. The petitioner submitted a detailed reply stating that the chips is a processed vegetable and would attract tax under Entry 107 of Part B of the First Schedule to TNVAT Act and not under residuary entry. Despite the reply, the respondent simply confirmed the proposal by relying on the clarification issued by the Commissioner of Commercial Taxes. Aggrieved over the order, the petitioner is before this Court.

(2.) The respondent denied all the averments made in the affidavit filed in support of the Writ Petition and would contend that as per the clarification issued by the Commissioner of Commercial Taxes, Chennai, in VAT Cell 7342/2007 (VCC No. 225), dated 29-3-2007, the sale of chips are taxable at 4% without a brand name vide Entry 51 of Part B of the First Schedule and with a brand name are taxable at 15% vide Part C of the First Schedule. Since the petitioner has paid only 4% tax, the demand for payment of the difference of tax, as per the clarification issued by the Commissioner of Commercial Taxes, is within the provisions of the Act and in accordance with law.

(3.) I have considered the submissions made on either side.