ANGEL LABEL DIVISION Vs. DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) This Writ Petition has been filed for a Writ of Certiorari to quash the Re- Assessment Order dated 28.02.2006 of the respondent herein.

(2.) The case of the Petitioner is that it is a registered dealer of the respondent and carries on business as a manufacturer of narrow woven fabric labels. According to the Petitioner, the said product comes within the scope of heading '58.06' of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (the Additional Duties of Excise Act). Therefore, the said product is exempted from sales tax under Entry 11 of Part A of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 (the TNGST Act), which reads as follows:

(3.) The Petitioner further states that the Special Commissioner and Commissioner of Commercial Taxes, Chennai, issued a clarification D.Dis.ActCellII/17315/2000 dated 02.06.2000 whereby it was clarified that narrow woven fabric labels under Entry 11 of Part A of the Third Schedule to the TNGST Act are eligible for exemption. In addition to the aforesaid clarification, it appears that another clarification L.Dis.Acts CellII/78749/2000 dated 13.02.2001 was issued to the effect that narrow woven fabric falls under entry 11 in Part A of the Third Schedule to the TNGST Act and is eligible for exemption. Thereafter, in response to letter dated 09.03.2011 from the Narrow Woven Fabrics Manufacturers Association, of which the Petitioner is a member, requesting for a clarification under Section 28A of the TNGST Act, the Special Commissioner and Commissioner of Commercial Taxes (FAC), Chennai, clarified that the Clarification dated 13.02.2011 would be followed and that past settled cases would not be reopened and that pending cases would be decided as per Clarification dated 13.02.2011. A corrigendum/erratum dated 29.10.2001 was issued, subsequently, confirming that the clarification was in the context of narrow woven fabric labels and not narrow woven fabric.