ELGI EQUIPMENTS Vs. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THE prayer in the petition is to quash the proceedings of the respondent/assessing authority in TNGST 1880011/98 -99 dated June 20, 2001 as invalid, illegal and violative of Articles 14 and 141 of the Constitution of India.

(2.) The brief facts leading to the present petition are as follows :

(3.) IF this formula is adopted, the taxable turnover has to be fixed at Rs. 3,95,45,521 at two per cent as against Rs. 2,97,67,856 as originally proposed. By issuing the notice, objections were called for and the petitioner in his letter dated June 15, 2001 contended that the circular dated September 28, 1999 is to be given prospective effect from the assessment year 1999 -2000 onwards and not for earlier years. As per the circular in Acts Cell -I/5232/96 dated March 15, 1996, export sales are not considered in arriving at the turnover under Section 3(4) of the Act. Therefore, the adoption of the formula prescribed on September 28, 1999, which has prospective effect, is not in order. On considering the objections, the assessing authority observed that though the circular dated September 28, 1999 was issued during the year 1999 -2000, still the fact remains that the final assessment of the petitioner -company for the year 1998 -99 was taken up only subsequent to the circular dated September 28, 1999 and therefore there is no incorrectness in adopting the formula. As a result, the impugned order dated June 20, 2001 was passed by fixing among others, the turnover under Section 3(4) of the Act at Rs. 3,95,45,521. Hence, the present petition.