M/S.Gem Edible Oils Private Limited vs The Assistant Commissioner on 28 June, 2016
2. The petitioner, who is a registered dealer under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) as well as Central Sales Tax Act, 1956, is engaged in local as well as interstate purchases of raw sunflower oil and also by means of import and the same is refined in their unit. The refined sunflower oil is sold locally, inter-state and also transferred to consignment agents and branches located in other States otherwise than by way of sale. The petitioner's case is that sale of vegetable oils including raw and refined sunflower oil is exempted upto a turnover of Rs. 300 Crores under Entry 65 of the fourth schedule to the TNVAT Act and this limit has been subsequently increased to Rs.500 Crores. This aspect of the matter is not disputed by the respondent. However, the respondent Assessing Officer issued notices dated 13.11.2015 stating that the petitioner is liable to tax under Sections 12(1)(a) and 12 (1)(c) of the TNVAT Act and objections were called for. The petitioner submitted their objections pointing out that Section 12 of the TNVAT Act would have no application to their case and referred to the relevant entry, namely Entry No.65 and stated that sale of the vegetable oils, such as Coconut Oil, Gingelly Oil, Groundnut oil, Sunflower Oil, Cotton seed Oil, Rice Bran Oil, all refined oils of the above 1 to 6 and Refined Palm Oil, by any other dealer, whose total turnover on the sale of those goods does not exceed Rs.300 Crores per annum is entitled for exemption. Therefore, it was pointed out that Sunflower Oil falls in Entry No.4 and also attention of the Assessing Officer was drawn to Entry No.7. That apart, it was pointed that in a recent decision of this Court in the case of M/s.Sri Krishna Oil Stores Vs. The Commercial Tax Officer in W.P.No.11517 of 2015, the identical issue was considered by this Court with regard to Soya Been Oil and orders were passed by this Court on 25.08.2015. Inspite of the petitioner having pointed out all the details, the respondent, after extracting the objections given by the dealer, has confirmed the proposal once again by referring to Section 12 of the TNVAT Act and also confirmed the penalty.