STATE OF TAMIL NADU Vs. TVL.ROMAR FASHIONS

JUDGEMENT

(1.) The State has filed this revision against the order dated 10.05.2002, dismissing the appeal of the State and holding that the penalty under Section 12(5)(iii) of the T.N.G.S.T. Act was not leviable on the respondent assessee for the Assessment Year 1992-93 on the sale of REP licences by the assessee during the assessment period.

(2.) The reasons assigned by the learned Tribunal in the impugned order for setting aside the said penalty are quoted below for ready reference.

(3.) Learned counsel for the State Mr.Shafiq submitted that the controversy with regard to the leviability of sales tax on the sales of REP licence was in the state of confusion and by the decision of the Karnataka High Court rendered in the case of [1992] 86 STC 175 ( Bharat Fritz Werner Ltd. v. Commissioner of Commercial Taxes), it was held that the REP licences are exim scrips falling within the definition of 'goods' and therefore the sale shall attract the provisions of the Sales Tax law, and the Madras High Court dealt with the said controversy for the first time in the case of " P.S. Apparels vs Deputy Commercial Tax Officer " and by its judgment dated 04.04.1994 reported in [1994] 94 STC 139, reiterated the same position and gave the following conclusions:-