Madras High Court
Tvl.Nila Cold Storage (P) Ltd vs The State Of Tamil Nadu on 9 August, 2023
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 09.08.2023
CORAM
THE HONOURABLE DR.JUSTICE ANITA SUMANTH
AND
THE HONOURABLE MR.JUSTICE R.VIJAYAKUMAR
T.C.(MD)Nos.169 of 2012 and 5 to 14 of 2013
T.C.(MD)No.169 of 2012:-
Tvl.Nila Cold Storage (P) Ltd.,
38/1, Kandasamypuram,
Tuticorin, Tuticorin. ...Appellant
-Vs.-
The State of Tamil Nadu,
represented by its Assistant Commissioner
of Commercial Taxes-1,
Tuticorin. ...Respondent
PRAYER:- Tax Case (Revision) filed under Section 38 of the Tamil Nadu
General Sales Tax Act, 1959, to revise the order of the Sales Tax
Appellate Tribunal (Additional Bench) Madurai dated 15.03.2001 and
passed in Madurai Tribunal State Appeal No.11/2006.
For Appellant :Mr.N.Inbarajan
For Respondent :Mr.T.Amjad Khan
Government Advocate
****
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COMMON JUDGMENT
(Judgment of the Court was delivered by DR.ANITA SUMANTH, J.)
A common order is passed in these 11 tax cases for the reason
that the questions of law raised relate to identical issues both on merits as
well as levy of penalty, in all appeals. The questions of law are as
follows:
1.Whether the Sales Tax Appellate Tribunal,
Additional Bench, Madurai committed an error of law in
holding that the petitioners is not eligible to purchase goods
availing concessional rate of tax under Section 3(5)?
2.Whether in the facts and circumstances of the
case the Sales Tax Appellate Tribunal is justified in holding
that the petitioner is not a manufacturer and thereby they
are not eligible to purchase goods against Form XVII
declaration?
3.Whether in the facts and circumstances of the
case the revision of assessment by levying the differential of
tax is justifiable under Section 3(5) of the Act?
4.Whether in the facts and circumstances of the
case the Sales Tax Appellate Tribunal is correct in
confirming the levy of penalty under Section 23 of the At
without giving a finding that there is mensrea?
5.Whether in the facts and circumstances of the
case the Sales Tax Appellate Tribunal without holding or
finding that the petitioners fails without reasonable excuse
to make use of the goods for the declared purpose in order
to attract Section 45(2)(e) of the Act in order to invoke
Section 23 of the Act for the levy of penalty is correct?
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2.As regards questions of law 1 to 3, they would have to be
answered against the appellants in light of the admitted position that the
capital goods, that have been purchased against Form-XVII declaration,
have not been used for production or processing goods or manufacturing
final products. The appellants are engaged in the business of export of
canned sea foods in that they rent out cold storage facilities to third
parties. This is the only nature of their business.
3.It is in this admitted factual context that concurrent findings
have been arrived at by the authorities, through assessment, first appeal
and second appeal, to the effect that the appellants are not engaged in
production or manufacturing, and are hence not entitled for the grant of
benefit of concessional rate of tax under Section 3(5) of the TNGST Act,
1959.
4.There is no serious contest to this finding of fact and in fact,
no question of law has been raised to the effect that the finding of fact is
perverse. In light of the same, questions 1 to 3 are decided adverse to the
appellants and in favour of the Revenue.
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5.As far as questions 4 and 5 are concerned, they relate to levy
of penalty under Section 23 of the TNGST Act, 1959. Even on this
score, the contest is not very severe for the reason that the sum total of
the amount of penalty for all 11 tax cases is in the region of Rs.70,000/-
only. Bearing in mind the smallness of the amount, we return these
questions as unanswered preserve the issues for decision in a more
appropriate case.
6.These Tax Cases are dismissed. No costs.
[A.S.M.J.,] & [R.V.J.,]
NCC :Yes/No 09.08.2023
Index :Yes/No
Internet :Yes/No
cmr
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To
The Assistant Commissioner of Commercial Taxes-1,
The State of Tamil Nadu, Tuticorin.
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DR.ANITA SUMANTH, J.
AND
R.VIJAYAKUMAR, J.
cmr
T.C.(MD)Nos.169 of 2012 and 5 to 14 of 2013
09.08.2023
https://www.mhc.tn.gov.in/judis
