w w w . L a w y e r S e r v i c e s . i n



M/s. Sharadha Terry Products Ltd., Coimbatore v/s Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Commercial Taxes Buildings, Coimbatore & Another


Company & Directors' Information:- SHARADHA TERRY PRODUCTS LIMITED [Active] CIN = U17115TZ1992PLC003799

Company & Directors' Information:- SALES INDIA PRIVATE LIMITED [Active] CIN = U29191GJ1985PTC007880

Company & Directors' Information:- R K B SALES PVT LTD [Active] CIN = U45202PB2006PTC029932

Company & Directors' Information:- R. M. COMMERCIAL PRIVATE LIMITED [Active] CIN = U51909WB2007PTC119841

Company & Directors' Information:- P R SALES CORPORATION PRIVATE LIMITED [Active] CIN = U52399PN2011PTC141408

Company & Directors' Information:- P P PRODUCTS PVT LTD [Active] CIN = U32305WB1991PTC051091

Company & Directors' Information:- K K PRODUCTS LIMITED [Active] CIN = U31300DL1991PLC045521

Company & Directors' Information:- M B COMMERCIAL CO LTD [Active] CIN = U51909WB1960PLC024849

Company & Directors' Information:- K B PRODUCTS PRIVATE LIMITED [Active] CIN = U51909MH2007PTC169627

Company & Directors' Information:- A R COMMERCIAL PRIVATE LIMITED [Active] CIN = U17210WB2011PTC170257

Company & Directors' Information:- P K SALES COMPANY PRIVATE LIMITED [Active] CIN = U74140DL2011PTC219681

Company & Directors' Information:- K G PRODUCTS PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031201

Company & Directors' Information:- K B SALES LTD [Active] CIN = U51109WB1993PLC058255

Company & Directors' Information:- J K SALES PRIVATE LIMITED [Active] CIN = U74899DL2001PTC109479

Company & Directors' Information:- D K Y SALES PRIVATE LIMITED [Active] CIN = U74899DL2002PTC117108

Company & Directors' Information:- S S P PRODUCTS PRIVATE LIMITED [Active] CIN = U22110WB1974PTC210201

Company & Directors' Information:- L R COMMERCIAL PVT LTD [Active] CIN = U70102WB1995PTC073665

Company & Directors' Information:- M L B PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC040990

Company & Directors' Information:- M M PRODUCTS LIMITED [Strike Off] CIN = U28994DL1992PLC050955

Company & Directors' Information:- M G B COMMERCIAL PVT LTD [Amalgamated] CIN = U74950WB1993PTC060732

Company & Directors' Information:- K P R SALES PVT LTD [Active] CIN = U74899DL1983PTC016626

Company & Directors' Information:- M C SALES PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031203

Company & Directors' Information:- A V M SALES PVT LTD [Active] CIN = U24112WB1990PTC048552

Company & Directors' Information:- M P K PRODUCTS PVT LTD [Active] CIN = U26919AS1994PTC004183

Company & Directors' Information:- P S SALES PRIVATE LIMITED [Active] CIN = U51432UP2002PTC026496

Company & Directors' Information:- G K PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC043260

Company & Directors' Information:- A M SALES PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC034571

Company & Directors' Information:- V A M COMMERCIAL CO LTD [Active] CIN = U51909WB1983PLC036163

Company & Directors' Information:- N R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51109AS1998PTC005561

Company & Directors' Information:- C L PRODUCTS INDIA LIMITED [Active] CIN = U51909DL2002PLC116975

Company & Directors' Information:- K. S. A. PRODUCTS PRIVATE LIMITED [Active] CIN = U51220PB2014PTC039023

Company & Directors' Information:- S N SALES PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1995PTC071621

Company & Directors' Information:- G C SALES PVT LTD [Active] CIN = U51109HR1989PTC030575

Company & Directors' Information:- R C COMMERCIAL PRIVATE LIMITED [Active] CIN = U67120UP1992PTC014057

Company & Directors' Information:- D G COMMERCIAL PRIVATE LIMITED [Converted to LLP] CIN = U52100AS2007PTC008457

Company & Directors' Information:- D. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U52320DL2011PTC213508

Company & Directors' Information:- G. L. SALES PRIVATE LIMITED [Active] CIN = U51909DL2010PTC205078

Company & Directors' Information:- J P M SALES PRIVATE LIMITED [Strike Off] CIN = U52100TG2012PTC080686

Company & Directors' Information:- R S PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036603

Company & Directors' Information:- R R PRODUCTS PRIVATE LIMITED [Active] CIN = U24249HR1999PTC034291

Company & Directors' Information:- J B COMMERCIAL CO PVT LTD [Active] CIN = U51909WB1980PTC033099

Company & Directors' Information:- I G PRODUCTS PRIVATE LIMITED [Active] CIN = U74999WB2012PTC183503

Company & Directors' Information:- G N M COMMERCIAL PVT LTD [Active] CIN = U51909WB1996PTC080365

Company & Directors' Information:- P M COMMERCIAL CO LTD [Active] CIN = U51909WB1982PLC035383

Company & Directors' Information:- J M COMMERCIAL & CO LTD [Converted to LLP] CIN = U67120DL1982PLC242476

Company & Directors' Information:- S P COMMERCIAL CO LTD [Strike Off] CIN = U45201WB1982PLC035237

Company & Directors' Information:- B B COMMERCIAL LTD [Active] CIN = L51909WB1980PLC033130

Company & Directors' Information:- T T COMMERCIAL CO PVT LTD [Active] CIN = U70101WB1995PTC075032

Company & Directors' Information:- C R SALES PRIVATE LIMITED [Active] CIN = U51311HR1989PTC034949

Company & Directors' Information:- W & F COMMERCIAL PRIVATE LIMITED [Active] CIN = U51909WB2004PTC098442

Company & Directors' Information:- J S R PRODUCTS PRIVATE LIMITED [Active] CIN = U31908DL2007PTC170841

Company & Directors' Information:- C F C PRODUCTS PRIVATE LIMITED [Active] CIN = U28129DL1998PTC095531

Company & Directors' Information:- S B SALES PRIVATE LIMITED [Active] CIN = U74899DL1984PTC019075

Company & Directors' Information:- M S PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC055125

Company & Directors' Information:- B R PRODUCTS PRIVATE LIMITED [Active] CIN = U31909DL1999PTC100727

Company & Directors' Information:- S P B PRODUCTS LIMITED [Active] CIN = U51909DL1996PLC082631

Company & Directors' Information:- G K D PRODUCTS PRIVATE LIMITED [Active] CIN = U15431WB1998PTC086840

Company & Directors' Information:- M B R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17111WB1993PTC060806

Company & Directors' Information:- S M G SALES PRIVATE LIMITED [Active] CIN = U52190DL1996PTC076099

Company & Directors' Information:- P D PRODUCTS PRIVATE LIMITED [Active] CIN = U23201DL2000PTC108462

Company & Directors' Information:- S K M PRODUCTS PRIVATE LIMITED [Active] CIN = U18101DL1998PTC093415

Company & Directors' Information:- H R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1978PTC009183

Company & Directors' Information:- S G COMMERCIAL CO PVT LTD [Strike Off] CIN = U15312WB1955PTC022120

Company & Directors' Information:- G N INDIA SALES PRIVATE LIMITED [Active] CIN = U74999WB2012PTC180525

Company & Directors' Information:- V S PRODUCTS PRIVATE LIMITED [Active] CIN = U36900DL2008PTC185445

Company & Directors' Information:- S P N COMMERCIAL PRIVATE LIMITED [Active] CIN = U52390WB2010PTC140826

Company & Directors' Information:- J. D. COMMERCIAL PRIVATE LIMITED [Active] CIN = U34100DL2009PTC188147

Company & Directors' Information:- H K PRODUCTS LIMITED [Active] CIN = U51900GJ2015PLC085457

Company & Directors' Information:- B E & I COMMERCIAL PVT LTD [Active] CIN = U24231WB1986PTC040618

Company & Directors' Information:- V. R. A. SALES PRIVATE LIMITED [Active] CIN = U74900UP2010PTC039548

Company & Directors' Information:- B COMMERCIAL PRIVATE LIMITED [Strike Off] CIN = U60230OR2011PTC014188

Company & Directors' Information:- K K SALES PRIVATE LIMITED [Active] CIN = U20299UP1987PTC009147

Company & Directors' Information:- S R K PRODUCTS PRIVATE LIMITED [Active] CIN = U51221KA1989PTC010032

Company & Directors' Information:- K P COMMERCIAL PRIVATE LIMITED [Active] CIN = U72200GJ1999PTC036317

Company & Directors' Information:- G M PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC044687

Company & Directors' Information:- V T N PRODUCTS PVT LTD [Active] CIN = U51109WB1996PTC080094

Company & Directors' Information:- P S I SALES PRIVATE LTD. [Active] CIN = U74899DL1986PTC022999

Company & Directors' Information:- J D SALES LIMITED [Strike Off] CIN = U51909MH1983PLC029644

Company & Directors' Information:- N D K SALES PRIVATE LIMITED [Active] CIN = U51101UP2009PTC037413

Company & Directors' Information:- W S T Q PRODUCTS PRIVATE LIMITED [Active] CIN = U31300DL1999PTC102655

Company & Directors' Information:- H P SALES COMPANY PRIVATE LIMITED [Active] CIN = U51495DL2004PTC128566

Company & Directors' Information:- G S T PRODUCTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U31909TN2006PTC059575

Company & Directors' Information:- R. K. P. SALES PRIVATE LIMITED [Active] CIN = U52601UP2018PTC101743

Company & Directors' Information:- N R B SALES PVT. LTD. [Active] CIN = U51109WB1989PTC047356

Company & Directors' Information:- J. K. M. BUILDINGS PVT. LTD. [Strike Off] CIN = U70109WB1995PTC069405

Company & Directors' Information:- H M COMMERCIAL PRIVATE LIMITED [Strike Off] CIN = U52599WB2007PTC112975

Company & Directors' Information:- S. V. COMMERCIAL PRIVATE LIMITED [Active] CIN = U51909WB2010PTC145115

Company & Directors' Information:- S M P PRODUCTS PRIVATE LIMITED [Active] CIN = U25200DL2009PTC190965

Company & Directors' Information:- U C SALES PRIVATE LIMITED [Active] CIN = U30007DL2004PTC127320

Company & Directors' Information:- S N S PRODUCTS PRIVATE LIMITED [Active] CIN = U15490DL2005PTC142749

Company & Directors' Information:- U B PRODUCTS PRIVATE LIMITED [Active] CIN = U51224DL2002PTC116457

Company & Directors' Information:- A AND A PRODUCTS PRIVATE LIMITED [Active] CIN = U21098MP2004PTC017128

Company & Directors' Information:- V J PRODUCTS PRIVATE LIMITED [Active] CIN = U36900GJ2011PTC065252

Company & Directors' Information:- S AND A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51311DL1991PTC042938

Company & Directors' Information:- S AND G PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL1982PTC014843

Company & Directors' Information:- B P PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24241WB1999PTC089499

Company & Directors' Information:- D AND P PRODUCTS LIMITED [Amalgamated] CIN = U99999MH1951PTC008422

Company & Directors' Information:- S D H PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U55204KA2006PTC040734

Company & Directors' Information:- V M PRODUCTS PRIVATE LIMITED [Active] CIN = U24100DL2014PTC266679

Company & Directors' Information:- E C A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U27209TN1987PTC014022

Company & Directors' Information:- M A K SALES PRIVATE LIMITED [Amalgamated] CIN = U26106UP2003PTC027989

Company & Directors' Information:- S R COMMERCIAL PVT LTD [Active] CIN = U27209WB1987PTC041901

Company & Directors' Information:- D. K. G. SALES PRIVATE LIMITED [Active] CIN = U51909DL2012PTC232444

Company & Directors' Information:- G AND G SALES INDIA PRIVATE LIMITED [Under Process of Striking Off] CIN = U52339KL2001PTC015071

Company & Directors' Information:- G R COMMERCIAL PRIVATE LIMITED [Active] CIN = U74899DL2000PTC108839

Company & Directors' Information:- D S SALES PVT LTD [Active] CIN = U74899DL1981PTC011644

Company & Directors' Information:- S P M SALES PRIVATE LIMITED [Active] CIN = U51211DL1997PTC085322

Company & Directors' Information:- K S S SALES PRIVATE LIMITED [Active] CIN = U70200UP1999PTC024587

Company & Directors' Information:- S P C SALES PRIVATE LIMITED [Active] CIN = U51909DL2010PTC210237

Company & Directors' Information:- COMMERCIAL PRODUCTS LTD. [Strike Off] CIN = U24232WB1941PLC010698

Company & Directors' Information:- T I & M SALES LTD [Not available for efiling] CIN = U51900WB1967PLC015415

Company & Directors' Information:- G S SALES PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015481

Company & Directors' Information:- M B SALES INDIA PRIVATE LIMITED [Active] CIN = U74899DL1994PTC057259

Company & Directors' Information:- G B SALES PRIVATE LIMITED [Strike Off] CIN = U74900PN2013PTC149637

Company & Directors' Information:- M L G SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL1996PTC075048

Company & Directors' Information:- K I A SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL2003PTC122783

Company & Directors' Information:- M V SALES (INDIA) PRIVATE LIMITED [Active] CIN = U51909DL2008PTC184122

Company & Directors' Information:- A S J COMMERCIAL PRIVATE LIMITED [Active] CIN = U15497DL2012PTC230407

Company & Directors' Information:- P K C COMMERCIAL INDIA LIMITED [Active] CIN = U00800BR1995PLC006542

Company & Directors' Information:- R & Y SALES PRIVATE LIMITED [Strike Off] CIN = U74900DL1998PTC093675

Company & Directors' Information:- A S M SALES PRIVATE LIMITED [Strike Off] CIN = U45301UR2000PTC025735

Company & Directors' Information:- M J SALES PRIVATE LIMITED [Strike Off] CIN = U18101MH1988PTC049326

Company & Directors' Information:- G S PRODUCTS LIMITED [Strike Off] CIN = U25191UP1989PLC010483

Company & Directors' Information:- S B COMMERCIAL PVT LTD [Strike Off] CIN = U99999MH1982PTC028334

Company & Directors' Information:- G M SALES PRIVATE LIMITED [Strike Off] CIN = U99999MH1994PTC076494

Company & Directors' Information:- S G SALES PVT LTD [Active] CIN = U51909TG1989PTC010567

Company & Directors' Information:- D K B SALES PRIVATE LIMITED [Strike Off] CIN = U51109WB2009PTC136057

Company & Directors' Information:- R. P. SALES PRIVATE LIMITED [Active] CIN = U16004UP1995PTC017800

Company & Directors' Information:- P M C SALES PRIVATE LIMITED [Strike Off] CIN = U74899DL1986PTC024459

Company & Directors' Information:- M M SALES PRIVATE LIMITED [Strike Off] CIN = U52602OR1993PTC003255

Company & Directors' Information:- S S G M SALES (INDIA) PRIVATE LIMITED [Strike Off] CIN = U74900PN2014PTC151358

Company & Directors' Information:- B V COMMERCIAL PVT LTD [Active] CIN = U51109WB2006PTC108218

Company & Directors' Information:- D S COMMERCIAL PVT LTD [Strike Off] CIN = U26101WB1958PTC023936

Company & Directors' Information:- A P SALES PRIVATE LIMITED [Strike Off] CIN = U74899DL1977PTC008819

Company & Directors' Information:- A R SALES PRIVATE LIMITED [Active] CIN = U51909DL2003PTC123142

Company & Directors' Information:- B M SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL2004PTC127901

Company & Directors' Information:- A R K PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24231UP1978PTC004606

Company & Directors' Information:- S. M. PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17299DL1966PTC004634

Company & Directors' Information:- U R SALES PRIVATE LIMITED [Active] CIN = U51909PB2010PTC034419

Company & Directors' Information:- S W C SALES PRIVATE LIMITED [Strike Off] CIN = U52599PB2005PTC028340

Company & Directors' Information:- U. G. SALES PRIVATE LIMITED [Strike Off] CIN = U51101MH2012PTC233364

Company & Directors' Information:- M I P SALES PRIVATE LIMITED [Strike Off] CIN = U51900MH1973PTC016482

Company & Directors' Information:- G V S SALES PRIVATE LIMITED [Active] CIN = U51900MH2004PTC149593

Company & Directors' Information:- R. M. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U74999MH2017PTC298120

Company & Directors' Information:- K J SALES PRIVATE LIMITED [Strike Off] CIN = U74120MH2012PTC228743

Company & Directors' Information:- M G SALES PRIVATE LIMITED [Active] CIN = U74120UP2011PTC047801

Company & Directors' Information:- S F SALES PRIVATE LIMITED [Strike Off] CIN = U51101UP2011PTC044031

Company & Directors' Information:- S D T SALES PRIVATE LIMITED [Strike Off] CIN = U52390TG2012PTC080405

Company & Directors' Information:- D B S SALES PRIVATE LIMITED [Under Process of Striking Off] CIN = U74999UP2004PTC028747

Company & Directors' Information:- B C COMMERCIAL CO PVT LTD [Active] CIN = U51109WB1987PTC043138

Company & Directors' Information:- K B J COMMERCIAL COMPANY PVT LTD [Strike Off] CIN = U51109WB1991PTC051045

Company & Directors' Information:- S M SALES PRIVATE LIMITED [Active] CIN = U51900DL1993PTC053285

Company & Directors' Information:- A N SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL1997PTC091432

Company & Directors' Information:- A R V SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL2005PTC138896

Company & Directors' Information:- P & Q PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL2014PTC269162

Company & Directors' Information:- A. C. T. SALES PRIVATE LIMITED [Strike Off] CIN = U52100DL2008PTC172729

Company & Directors' Information:- N K COMMERCIAL PRIVATE LIMITED [Active] CIN = U74999DL2020PTC370258

Company & Directors' Information:- V R SALES PRIVATE LIMITED [Strike Off] CIN = U51109KA1990PTC011491

Company & Directors' Information:- A J SALES PVT LTD [Strike Off] CIN = U51909CH1989PTC009863

Company & Directors' Information:- G M SALES PVT LTD [Strike Off] CIN = U51909CH1992PTC012260

Company & Directors' Information:- U B COMMERCIAL PVT LTD [Strike Off] CIN = U51229WB1996PTC077559

Company & Directors' Information:- A TO Z SALES (P) LIMITED [Strike Off] CIN = U74900DL1996PTC082425

Company & Directors' Information:- H T PRODUCTS PVT LTD [Strike Off] CIN = U29266WB1981PTC033424

Company & Directors' Information:- J C SALES PRIVATE LIMITED [Strike Off] CIN = U51109DL1982PTC014805

Company & Directors' Information:- PRODUCTS (INDIA) LTD [Strike Off] CIN = U31901WB1961PLC024991

Company & Directors' Information:- M S SALES PRIVATE LIMITED [Strike Off] CIN = U74300UP1967PTC003153

Company & Directors' Information:- B R SALES COMPANY PRIVATE LIMITED [Strike Off] CIN = U34300DL1983PTC016125

Company & Directors' Information:- D V SALES PVT LTD [Strike Off] CIN = U51900MH1982PTC026068

Company & Directors' Information:- M PRODUCTS & CO PVT LTD [Strike Off] CIN = U51909WB1956PTC023215

Company & Directors' Information:- COMMERCIAL CORPORATION LIMITED [Dissolved] CIN = U99999MH1912PTC000353

Company & Directors' Information:- COMMERCIAL INDIA LIMITED [Under Liquidation] CIN = U99999MH1937PTC002591

Company & Directors' Information:- COMMERCIAL COMPANY OF INDIA LIMITED [Dissolved] CIN = U99999MH1941PTC003335

Company & Directors' Information:- SALES LIMITED [Dissolved] CIN = U99999MH1945PTC004578

    Writ Petition No. 38949 of 2005

    Decided On, 12 February 2020

    At, High Court of Judicature at Madras

    By, THE HONOURABLE DR. JUSTICE VINEET KOTHARI & THE HONOURABLE MR. JUSTICE R. SURESH KUMAR

    For the Petitioner: S. Ramanathan, Advocate. For the Respondents: R2, A.N.R. Jaya Prathap, Govt.Advocate (Taxes).



Judgment Text


(Prayer: Writ Petition under Article 226 of the Constitution of India praying to issue a Writ of Certiorari calling for the records of the first respondent in its order in CTA No.126/04 dated 12.09.2005 and quash the same as illegal.)

Dr. Vineet Kothari, J.

1. The Assessee M/s.Sharadha Terry Products Ltd., had filed this writ petition aggrieved by the order passed by the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Coimbatore on 12.09.2005, dismissing the appeal of the Assessee, which is a 100% Export Oriented Unit (EOU). By the impugned order, the Assessee's claim of availing the benefit of concessional rate of tax on the raw materials viz., cotton purchased by it in the declaration in Form No.17 under the Notification in G.O.No.528 dated 21.11.1997 was denied for the reason that the explanatory note attached to the said Notification issued by the State is not part of the Notification. Another issue of which the Assessee was denied the relief is on the ground that the export sale made by the Assessee of the fabric made out of the cotton purchased by it did not amount to a sale and therefore the condition of making a sale within the State was not satisfied by the Assessee.

2. The reasons assigned by the learned Tribunal in the impugned order are quoted below for ready reference.

"4. We have considered the arguments of both the sides and also verified the connected records. The first item of dispute relates to the turnover assessed under Section 3(4) of the Act. It is seen from the records that the Assessing Authority had estimated the turnover considering the export sales also made by the appellants. It is the contention of the appellants that the export sale, being a direct sale, is not liable to be considered for computing the turnover taxable u/s.3(4) of the Act. This issue is also considered by the TNTST, Chennai in the case of Elgi Equipments Coimbatore Vs. Assistant Commissioner (CT), Fast Track Assessment Circle, Coimbatore in OP No.544/01 and the Tamil Nadu Taxation Special Tribunal in its order dated 20.08.2001 held that,

"Section 3(4) of the Act clearly says that except in respect of inter-state Sale or purchase, if the goods are despatched to a place outside the State either by branch transfer or by transfer to an agent by whatever name called for sale or in any other manner, then purchase tax at 2% has to be paid in addition to the concessional rate of tax paid already u/s.3(3) of the Act. Therefore, when export sale has not been specifically excluded as in the case of inter-state sale while imposing purchase tax, there is absolutely no case to add words to the provisions of the Act. In this connection, it is relevant to quote the classic observations of Rewlatt, J. in Capt.Brandy Syndicate Vs. Commissioner of Inland Revenue (1921) 1 KB 64 at Page 71:

"In a taxing statute one has to look merely look at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is to be read in, nothing is to be implied. One can only look fairly at the languages used."

The above observation has been quoted with approval by a Bench of Three Judges of the Supreme Court in Commissioner of Income Tax Vs. Ajax Products Limited (1965) 55 ITR 741 (SC). Obviously, the reason to levy purchase tax u/s.3(4) of the Act is simply, namely that if the manufactured goods out of raw materials obtained against concessional rate are disposed of outside the State otherwise than by way of interstate sale either in the form of branch transfer or consignment sale or export sale, the State does not get any revenue and only to augment the revenue, the State has imposed the purchase tax. In Section 3(4) of the Act, the expression 'in any of the manner' would include sale by export also"

The Tamil Nadu Taxation Special Tribunal in another case in OP Nos.175 and 178/01 in which the petitioner Tvl.Chevro Leather Manufacturers, Chennai-31 raised the same issue, held in its order dated 14.03.2001, that:

"I have already referred to the decisions of the Apex Court and when Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959 is considered in the light of the other decisions, it is very clear that the sale of manufactured goods within the State is for the purpose of revenue and when the dealer evades the conditions laid down in Sections 3(3) and 3(4) of the Act. Certainly he is bound to pay the difference in tax between the original rate and the concessional rate."

The next item of dispute is the assessment made on the last purchase of cotton. The two notifications governing the sales to 100% EOU are extracted as under:

Notification No.II(1)/CTRE/100/97 dated 17.12.97:

In exercise of the powers conferred by Sub-Section(1) of Section 17 of the TNGST Act, 1959 (Tamil Nadu Act of 1959) the Governor of Tamil Nadu hereby makes an exemption in respect of the tax payable by any dealer on the sale of raw materials to the registered 100% Export Oriented Units in this State and units located in the Chennai Processing Zone."

Notification No.II(1)/CTRE/100/97 dated 17.12.97:

In exercise of the powers conferred by Sub-Section(3) of Section 17 of the TNGST Act, 1959 (Tamil Nadu Act of 1959), the Governor of Tamil Nadu hereby makes the following variation to the CT & RE Notification No.II/(1)/CTRE/100/97 published at page 90 of Part-II Section 1 of the Tamil Nadu Government Gazette dated the 17th December 1997.

VARIATION:

In the said Notification for the expression "Raw Materials", the expresssion 'Raw Materials, Packing Materials and Consumable Goods' shall be substituted."

The Notification dated 17.12.97, clearly says that the exemption is available to a dealer who is effecting sales of raw material to 100% EOU and the notification dated 1.4.98, further extended this concession to sale of packing materials and consumable goods also. It could be therefore seen from the above notification that the exemption available only to the sellers of the raw materials or packing materials or consumable goods to explanatory note appended to the Notification dated 21.11.97 exhibits the intention of the Government to exempt the purchase of all raw materials by 100% EOU and that based on the same, the appellant is not liable to pay tax on the purchases. But the explanatory note cannot be considered as a valid notification issued u/s.17 of the Act. The notificatioons as already stated above, grant exemption from payment of tax by a dealer who seels raw material to 100% EOU only. The contention of the appellant is not acceptable, we find that the order of the first appellate authority in confirming the assessment on the last purchase of cotton is correct and accordingly we uphold the same.

In the result, the appeal stands dismissed."

3. Learned counsel for the Assessee Mr.Ramanathan submitted that both the issues decided against the Assessee by the learned Tribunal are now covered by the later decisions of this Court in the case of "U.S.R.Tyres and Tubes Pvt.Ltd., -Vs- The Commercial Tax Officer, Trichy" decided on 05.04.2011 in W.P.No.1397 of 2008, in which the learned Single Judge of this Court decided the issue with regard to G.O.Ms.No.528, CT & RE dated 21.11.1997 in the following manner.

"8. According to the respondent, since the petitioners do not effect the sale of raw rubber to 100% Export Oriented Unit, they are not entitled to exemption uner G.O.Ms.No.528 CT&RE dated 21.11.1997. The purport of the Government Order is that the petitioners being an 100% Export Oriented Unit, they are entitled to exemption, if they purchase raw materials for manufacture.

9. It is not disputed even by the respondent that the purchase was made for the manufacture. It is seen that the petitioners involved in the purchase of raw rubber for manufacturing activity. The petitioners are entitled to exemption being an Export Oriented Unit. It is not necessary that the petitioners should involve in the sale of raw material to another Export Oriented Unit to claim the benefit of exemption. They are entitled to exemption at the last purchase, being the manufacturer. Hence, the impugned order is liable to be quahsed. Accordingly, the impugned order is quashed.

10. In the result, the Writ Petition is allowed and the respondent is directed to pass appropriate order relating to exemption under G.O.Ms.No.528 CT&RE dated 21.11.1997. Consequently, connected miscellaneous petition is closed. No costs."

4. The other issue raised by the learned counsel for the petitioner has been decided by the Division Bench of this Court in "Tube Investments of India Ltd Vs. State of Tamil Nadu" reported in [2010] 36 VST 67 (Mad), in which the Division Bench of this Court held that even 'exports sale satisfy the definition of 'Sale' under Section 2(n) read with Explanation to Section 3(a), 3(3) and (4) of the Central Sales Tax Act, and therefore the conditions of the Notification should be deemed to have been satisifed. The relevant portion from the head-note of the said judgment is quoted below for ready reference.

"Held allowing the petitions, that when, the State lacked the legislative competence by virtue of the Constitutional Embargo to levy any tax on export sale, the indirect creation of any tax liability on such "export sales" on the inputs puchased could not at all be countenanced. Further, the export sale was fully covered by the definition of "sale" under Section 2(n) read along with Explanation 3(a). It could never be disputed that the goods manufactured by availing of the concessional rate of tax in respect of those materials purchased in the manufacture of such goods as provided under Section 3(3) by itself would make it unambiguous that such goods were within the State. When the stipulations to be satisfied as prescribed under Explanation 3 to Section 2(n) were fulfilled, certa

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inly the export sale was also deemed to be a "sale" as defined under Section 2(n) of the Act for the purpose of the Act. The expression "any other manner" in Section 3(4) having been used following the expression "for sale" and applying the maxim ejusdem generis, it could only mean that any despatch to a place outside the State either by way of branch transfer or by transfer to an agent by whatever manner called, either for sale or for any other purpose, and it could not be attributed to an export sale. Therefore, the export sale was nothing but a sale for which an exigency of tax liability would not occur as provided under Section 3(4) of the Act." 5. Therefore, there is no dispute before us that both the issues decided by the Tribunal in the year 2005 have stood decided by this Court in the aforesaid two judgments. Accordingly, ex-facie we are satisfied that the order passed by the learned Tribunal is unsustainable and the writ petition deserves to be allowed. Accordingly, we allow the writ petition and set aside the impugned assessment order and the order of the learned Tribunal. No costs.
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