Madras High Court
M/S. Classic Associates vs The Commercial Tax Officer on 6 January, 2020
Author: C.Saravanan
Bench: C.Saravanan
W.P.No.35025 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.01.2020
CORAM:
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.Nos.35025 to 35027 of 2015
and
W.M.P. Nos. 1 ,1 & 1 of 2015
M/s. Classic Associates,
Rep. by its General Manager,
956-A, Poonamallee High Road,
Chennai - 84 ... Petitioner in all W.Ps.
Vs.
The Commercial Tax Officer,
O/o. The Assistant Commissioner (CT),
Purasawakkam Assessment Circle,
Dowlath Tower, 7th Floor,
No.59, Taylors Road,
Kilpauk, Chennai - 10 ... Respondent in all W.Ps.
Common Prayer: Writ Petitions are filed under article 226 of the Constitution of
India, seeking a Writ of Certiorari to call for the records of the respondent in the
impugned notice in TIN No.33460481880/2007-08, 2008-09, 2009-10 dated
21.09.2015 respectively and to direct the respondent to assess the sale of
Industrial Cables by the petitioner under Entry 66 of Part-B to the First Schedule of
the TN Vat Act.
1/6
http://www.judis.nic.in
W.P.No.35025 of 2015
For Petitioner (In all petitions) : Mr.K. Vaitheeswaran
For Respondent(In all petitions) : Mr. M. Hariharan
(Additional Govt. Pleader)
*****
COMMON ORDER
Heard the learned counsel for the petitioner and the learned Additional Government Pleader for the respondent.
2. Short point that arises for consideration in these writ petitions is whether 4% tax is applicable for Industrial Cables which falls under Entry No.66 of Part -B of First Schedule to the TNVAT Act, 2006.
3. The learned counsel for the petitioner has relied on the decision reported in [2015] 85 VST 520 (Mad) in "Madras Electric Trades Association Vs. Commissioner of Commercial Taxes, Chepauk, Chennai", wherein this Court after considering the decision of the Hon'ble Division Bench of the Delhi High Court, has held in para 5 & 6 as follows:
5."The other aspect being that an identical issue came up for consideration before the Hon'ble Division Bench 2/6 http://www.judis.nic.in W.P.No.35025 of 2015 of the Delhi High Court in the case of "Anchor Electrical (P) Ltd. Vs. Commissioner, Sales Tax [2014] 71 VST 427 (Delhi) in ST. Appl. No.45 of 2012," wherein the Delhi Sales Tax authorities contended that definition of "Industrial Cables"
in the Electricity Act is purely technical and cannot be imported into any statutory authorization and sought to sustain the notification. The Hon'ble Division Bench of the Delhi High Court after taking into consideration of the definition of cable as defined under Section 2(g) of the Industrial Electricity Rules: "Voltage" in Section 2(av) of the Indian Industrial Electricity Rules, held that when statutory determination under the relevant law itself having classified 1100 volts cable as high voltage cables, there cannot be any difficulty in accepting the dealer's contention that the subject goods are industrial cables.
6. In the light of the decision of the Delhi High Court which is pari materia to the present case, the clarification issued by the respondent is held to be not sustainable in law, as the classification of the cables under the relevant statutory provision is applicable for the purposes of taxation under the relevant statutory provision is applicable for the purposes of taxation under the provisions of the Tamil Nadu Value Added Tax Act. Further the Authority for clarification of Advance Rulings, by order dated October 4, 2014, the applicant before the Authority was a dealer in electrical goods and he sought clarification 3/6 http://www.judis.nic.in W.P.No.35025 of 2015 as regards the rate of tax for high voltage cable. The Advance Ruling Authority after considering the entire matter, clarified that Industrial Cables which are high voltage cables with application above 650 volts are taxable at five per cent under entry 66 with the description, "Industrial cables (high voltage cables, XLPE cables, jelly filled cables, optical fibre cables)" in part B of the First Schedule to the Act."
4. In the light of the aforesaid decisions, the writ petitions are allowed.
No Costs. Consequently, connected miscellaneous petitions are closed.
03.01.2020 lbm Index : Yes / No Internet : Yes/ No 4/6 http://www.judis.nic.in W.P.No.35025 of 2015 Copy to:
1. The Commissioner of Customs, Chennai - VIII Commissionerate, Customs Broker Section, Custom House, No.60, Rajaji Salai, Chennai - 600 001.
2. The Assistant Commissioner of Customs, Customs Broker Section, Custom House, No.60, Rajaji Salai, Chennai - 600 001.5/6
http://www.judis.nic.in W.P.No.35025 of 2015 C.SARAVANAN, J.
lbm W.P.Nos.35025 to 35027 of 2015 and W.M.P. Nos. 1 ,1 & 1 of 2015 06.01.2020 6/6 http://www.judis.nic.in