Madras High Court
Tvl.Unique Traders vs The Commercial Tax Officer on 20 June, 2019
Author: Anita Sumanth
Bench: Anita Sumanth
1
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 20.06.2019
CORAM:
THE HONOURABLE DR.JUSTICE ANITA SUMANTH
W.P.(MD)Nos.10728, 10731 and 10733 of 2010
and
M.P.(MD)Nos.1, 1 and 1 of 2010
Tvl.Unique Traders,
Represented by its Partner,
Thiru T.Muralidharan,
No.17/2, Perali Road,
Viruthunagar. ... Petitioner in all W.Ps.
Vs.
The Commercial Tax Officer-1,
Commercial Taxes Building,
Madurai Road,
Viruthunagar ... Respondent in all W.Ps.
COMMON PRAYER:-Writ Petitions filed under Article 226 of the
Constitution of India, praying for the issuance of a Writ of
Certiorari, to call for the records relating to the final assessment
orders passed by the respondent in Tamil Nadu General Sales Tax
in TNGST 5721309/05-06 dated 13.07.2010, TNGST
5721309/04-05 dated 13.07.2010 and TNGST 5721409/05-06 dated
15.07.2010, respectively received by the petitioner on 21.07.2010.
For Petitioner : Mr.A.S.Mujibur Rahman
For Respondent : Mr.R.Murugan
Additional Government Pleader
http://www.judis.nic.in
2
COMMON ORDER
The petitioner is a dealer registered under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (in short 'the Act'). The petitioner receives polythene rolls from customer and effects printing upon them using ink, Ethyl Acetate and Toulene.
2.According to the petitioner, the aforesaid items are fully consumable / consumed in the activity of printing. After the process of printing is complete, the polythene bags are returned to the customer. The petitioner contends that the cost of consumables utilised in printing are to be excluded from its turnover as, it falls within the purview of 'labour and other charges' in terms of Section 3-B(2)(e) of the Act.
3.The assessing authority however took the view that the turnover would be liable to tax at 4%, rejecting the exemption claimed by the petitioner. Hence, the writ petition.
4.Heard the learned counsel on either side. http://www.judis.nic.in 3
5.A Counter has been filed by the respondent denying the contention that the ink and resins used in the work contract are consumable.
6.Having heard the learned counsel I am of the view that the assessments are liable to be set aside. Use of inks and other consumables by the petitioner have been clearly held to be fully consumable in the activity of printing. That apart, once the activity of printing on the polythene bags has been completed, the bags are handed back to the customer who had supplied them. Thus, the transaction is of the nature of works contract or a labour contract and cannot be considered as liable to tax at 4%.
7.The decisions of this Court in W.P.(MD)No.1338 of 2013, dated 14.11.2014 in the case of The State of Tamil Nadu vs. Tvl.The Nadar Press Limited and another and Tax Case (Revision) No.687 of 2006, dated 05.11.2008 in the case The state of Tamil Nadu vs. Tvl. Vibgyor Process support the aforesaid conclusion. http://www.judis.nic.in 4 DR.ANITA SUMANTH, J.
ta
8.In the light of the aforesaid discussion, these Writ Petitions are allowed. No costs. Consequently, connected miscellaneous petitions are closed.
20.06.2019
Index :Yes/No
Internet : Yes/No
ta
Note: Issue order copy on 26.07.2019.
To Commercial Tax Officer-1, Commercial Taxes Building, Madurai Road, Viruthunagar W.P.(MD)Nos.10728, 10731 and 10733 of 2010 http://www.judis.nic.in