STATE OF TAMIL NADU Vs. INDIAN CEMENTS LTD

JUDGEMENT

(1.) TAX case revision under section 38 of the T.N.G.S.T. act, 1959 against the order of the sales tax appellate tribunal (main bench), Chennai, dated 22.07.2002 in ta.no.191 of 2000 relating to the assessment year 1980-81.) This revision by the state arises on the following substantial question of law, viz.,

(2.) THE short facts which are required to be stated are that the respondent is a cement manufacturing company. THE assessment relates to the year 1980-81. This revision is confined to that part of the order of the tribunal in having setting aside the penalty imposed on the respondent under section 12 (5) (iii) of the Tamil Nadu general sales tax act, 1959. THE sale value of the cement bags manufactured by the respondent was determined by the cement control order. It is not in dispute that the said sale value is determined in the cement control order by including the freight and packing charges. Nevertheless, the respondent in the course of its sale also charged a further sum by way of freight and packing charges over and above the price fixed in the cement control order.

(3.) BY the order impugned in this revision, the tribunal while confirming the levy of tax, set aside the penalty imposed by holding that the respondent acted on a bonafide belief in the light of law laid down by this court in the decision reported in (1982) 51 STC 171 (Ramco Cement Distribution Co.(P.) Ltd. Vs. The State Of Tamil Nadu), which came to be reversed by the hon'ble supreme court only in the decision reported in (1993) 88 STC 151 (Ramco Cement Distribution Co.(P.) Ltd. Vs. The State Of Tamil Nadu).