PARANTHAMAN ROCK DRILLS Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Heard Mrs.R.Hemalatha, learned counsel for the petitioners and Mr.V.Haribabu, learned Additional Government Pleader for the Commercial Taxes Department.

(2.) The petitioners are manufacturers of borehole drilling rigs (in short 'equipment') used for the purpose of drilling. They are registered dealers on the file of the first respondent, the Commercial Tax Officer. Since there was some ambiguity felt as to the rate of tax applicable to the equipment, the petitioners sought a clarification from the Commissioner of Commercial Taxes under application dated 29.03.2007 as to what the proper classification of the commodity would be as well as the applicable rate of tax. The Application reads as follows:

(3.) According to the petitioners all material to illustrate the nature of the equipment as well as the use thereof were placed before the Commissioner, who upon consideration of the same, clarified that the equipment is taxable at the st rate of 4% under Entry No.138 of Part B to the I Schedule to the Tamil Nadu Value Added Tax Act, 2006 (in short 'Act'). The Clarification reads as follows: