Madras High Court
M/S.Laljee Godhoo & Co vs The Commercial Tax Officer on 20 July, 2016
Author: T.S.Sivagnanam
Bench: T.S.Sivagnanam
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 20.07.2016 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM W.P.Nos.8760 & 8761 of 2005 & W.M.P.Nos.9452 & 9453 of 2005 M/s.Laljee Godhoo & Co., No.9, Narayana Mudali Street, Chennai-600 079. .. Petitioner in both Writ Petitions Versus The Commercial Tax Officer, Sowcarpet I Assessment Circle, Chennai. .. Respondent in both Writ Petitions Prayer in both Writ Petitions: These Writ Petitions are filed under Article 226 of the Constitution of India, seeking for a Writ of Certiorarified Mandamus to call for the records of the respondent in TNGST-0220012/1999-2000 & 2000-2001 respectively, dated 01.03.2005 and quash the proceedings dated 01.03.2005 as contrary to law and further direct the respondent not to disallow the concessional levy of tax on purchase of packing materials against Form XVII declarations. For Petitioner in both Writ Petitions : Mrs.C.Rekha Kumari For Respondent in both Writ Petitions : Mr.Manokaran Sundaram Additional Government Pleader C O M M O N O R D E R
Heard Mrs.C.Rekha Kumari, learned counsel appearing for the petitioner in both Writ Petitions and Mr.Manokaran Sundaram, learned Additional Government Government Pleader, accepting notice on behalf of respondent in both Writ Petitions.
2. The petitioner-Company, which is a registered dealer on the file of the respondent, under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred as the "TNGST Act" ), has challenged the pre-revision notices dated 01.03.2005, for the years 1999-2000 & 2000-2001.
3. The respondent has issued notices stating that from the records, it is found that the petitioner had purchased asafoetida in lumps and broken into pieces and sold in packings and it is not a manufacture.
4. The learned counsel for the petitioner submitted that if a product is secured in bulk form and then, packed into smaller convenient packings containing labels and caps, it would be a manufacturing activity. In other words, it is submitted that if the product purchased in bulk is made marketable, then, it would amount to manufacture. In this regard, the learned counsel for the petitioner has placed reliance of the decisions of the Hon'ble Division Bench of this Court in the case of GLAXO SMITHKLINE CONSUMER HEALTHCARE LIMITED Vs. State of Tamil Nadu reported in (2013) 62 VST 294 and in the case of TAMIL NADU CO-OPERATIVE MILK PRODUCERS' FEDERATION LTD., Vs. State of Tamil Nadu, reported in (2013) 62 VST 190
5. As rightly pointed out by the learned Additional Government Pleader, the impugned proceedings is only a pre-revision notice. Therefore, it is well open to the petitioner to raise all objections before the Assessing Officer. The petitioner should explain the nature of activity done by them and produce all the materials, such as, packing materials etc., and demonstrate before the Assessing officer as to whether the activity done is a manufacturing activity or not, thereafter, after affording an opportunity of personal hearing to the petitioner, the respondent shall proceed to frame the assessment in accordance with law.
6. At the time when the Writ Petition was entertained, an interim order was granted on 16.03.2005, directing the petitioner to pay 50% of the differential tax within a period of eight weeks, failing which, the interim order will stand vacated. The learned counsel for the petitioner does not have any instructions from his client as to whether the conditional order passed by this Court has been complied with or not. In the event, if the petitioner complied with the said condition, then whatever the amount has been paid by the petitioner can be adjusted in the future assessments.
7. Accordingly, these Writ Petitions are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.
20.07.2016
Index :Yes/No.
Internet:Yes/No.
r n s
To
The Commercial Tax Officer,
Sowcarpet I Assessment Circle,
Chennai.
T.S.SIVAGNANAM, J.,
r n s
W.P.Nos.8760 & 8761 of 2005 &
W.M.P.Nos.9452 & 9453 of 2005
20.07.2016