Madras High Court
M/S.Sri Krishna Oil Stores vs The Commercial Tax Officer on 25 August, 2015
Author: R.Mahadevan
Bench: R.Mahadevan
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 25.08.2015
CORAM
THE HONOURABLE MR.JUSTICE R.MAHADEVAN
W.P.No.11517 of 2015
and M.P.Nos.1 & 2 of 2015
M/s.Sri Krishna Oil Stores [ Petitioner ]
Rep. by its Partner B.Shanmugam
No.112, Kamatchi Amman Koil Street
Tiruvannamalai - 606 601.
Vs
The Commercial Tax Officer
Tiruvannamalai-II,
Tiruvannamalai
[ Respondent]
Petition filed under Article 226 of the Constitution of India to issue a Writ of certiorari to call for the records on the file of the respondent in its impugned proceedings made in TIN No.33394660242/ 2007-2008 dated 26.2.2015 quash the same.
For Petitioner : Ms.R.Hemalatha
For Respondent : Mr.S.Manoharan Sundaram, AGP(T)
O R D E R
Heard the learned counsel for the petitioner and the learned Additional Government Pleader (Taxes), for the respondent.
2. The petitioner has come forward with the writ petition challenging the order of the respondent dated 26.02.2015.
3.1 The petitioner, Tvl. Sri Krishana Oil Stores, dealer in refined Vegetable Oils, dealing with sale transactions both local as well as interstate, are assessee on the books fo the respondent. They were originally assessed for the year 2007-08 in the proceedings of the respondent dated 11.08.2010, wherein exemption was allowed on the sales of Refined Soya Bean Oil under Entry No.65 of Part B of IV Schedule to the TNVAT Act,2006.
3.2 According to the learned counsel for the petitioner, though ordinary soya oil was included under Entry 65 Part B IV Schedule with effect from 01.04.2008, granting exemption, but all refined oils came to be included with effect from 01.01.2007 by a specific condition. However, without referring to the specific condition in IV schedule, the respondent issued notice on 18.12.2014 stating that petitioner is not eligible for exemption on the sales of Soya oil before 01.04.2008 and taxable upto 2007-08 and therefore, proposed to revise the assessment.
3.3 Further, according to the learned counsel for the petitioner, prior to the issuance of the said notice dated 18.12.2014, there was an inspection conducted by the Enforcement Wing Officials of the Commercial Tax Department on 09.05.2014, wherein, the Enforcement Wing Officers noticed that the petitioner has made local and inter-state purchases of Refined Soya Beans oil during the year 2007-08 and sold locally and claimed exemption on the same as vegetable oil under Entry 65 of Part B of the IV Schedule of TNVAT Act and it was opined that Refined Soya Beans Oil and Soya Bean Oil are liable to tax at 4% as per entry 145 Part B of I Schedule of TNVAT Act upto 31.03.2008 and therefore, exemption claimed on the sale of refined soya bean oil is not correct. Pursuant to the said notice, the petitioner, filed a reply dated 24.12.2014 stating that as per Entry No.8 (All refined oils) under item 65 of Part B of IV Schedule, Refind Soya Bean Oil is also included with effect from 01.01.2007 by Act No.21 of 2007 and therefore, the exemption claimed is in order. However, without proper reference that all refined oils are included with effect from 01.01.2007, the impugned order came to be passed. Hence, the impugned order is liable to be set aside.
3.4 The learned Additional Government Pleader supported the stand taken by the revenue.
4. This Court considered the submissions made by the learned counsel on either side and perused the materials available on record.
5. The petitioner's claim of exemption on the sale of Refined Soyabean oil was negatived by the respondent on the ground that soyabean oil and refined soyabean oil are liable to tax at 4% as per the entry under item 145 of Part B of I Schedule to the TNVAT Act upto 31.03.2008. According to the respondent, soya oil was included under Entry 65 of Part B of IV Schedule as Sl.No.9 with effect from 01.04.2008 by Article No.32 of 2008 and therefore, exemption is not eligible on the sale of soya oil before 01.04.2008. However, a perusal of item 65 of Part B of IV Schedule reveals that all refined oils (item No.8) came into force with effect from 01.01.2007 and Soya Oil was added (item No.9) with effect from 01.04.2008. The intention of the legislature to grant exemption for all refined oils with effect from 01.01.2007 is apparent to the naked eye on perusing Entry No.8 of item 65 of the IV Schedule of TNVAT Act. Therefore, the contention of the respondent that the refined soya bean oil has been substituted as Entry 9 under Item 65 of Part B of IV Schedule with effect from 01.04.2008 only is not sustainable for the reason that all refined oils includes Refined Soya Bean Oil, which was included for exemption with effect from 01.01.2007. Hence, the impugned order is liable to be set aside.
6. Accordingly, the impugned order passed by the respondent dated 26.02.2015 is set aside and the respondent is directed to pass appropriate orders afresh, bearing in mind that item 65 of Part B of IV Schedule, relates to all Refined Oils, which includes Refined Soya Bean Oil also.
The writ petition is disposed of in the above terms. No costs. Connected miscellaneous petitions are closed.
25.08.2015 rg Index: Yes/ No To The Commercial Tax Officer Tiruvannamalai-II, Tiruvannamalai R.MAHADEVAN,J.
rg W.P.No.11517 of 2015 25.08.2015