Heard Mr.N.Murali, learned counsel appearing for the petitioner and Mr.S.Kanmani Annamalai, learned Additional Government Pleader appearing for the respondent.
2. The petitioner is aggrieved by an order of assessment passed by the respondent under the provisions of Tamil Nadu General Sales Tax [hereinafter referred to as the Act] for the year 2002-03. The only ground on which the petitioner's consignment sales transactions were disbelieved is that the petitioner has not produced transit pass as required under Section 44A[2][a].
3. Section 44A[2][a] states that when any goods specified in the 7th Schedule are consigned or transferred by any goods vehicle to another State from any place within the State, the consignor or transferor of the goods shall obtain a transit pass in the prescribed manner. Clause [c] of Sub-Section 2 of 44A stated that if the consignor or transferor of the goods fails to comply with the clause [b], it shall be deemed that the goods carried thereby have been sold within the State by the consignor or transferor and such consignor or transferor will be liable to pay tax in accordance with the provisions of the Act.
4. The respondent though noted that for identical turnover the petitioner had claimed exemption under the Central Sales Tax, denied the benefit and treated the transaction as illegal sale solely on account of non production of transit pass.
5. In such circumstances, the question would be as to whether the assessment could have been completed by the Assessing Officer solely on this ground and the answer to this question should be in the negative.
6. In the light of the circular issued by the Principal Commissioner of Commercial Taxes dated 23.11.2000, after referring to Section 44A, the Commissioner directed that all the officers, including check post officers, may be informed that transit pass need not be insisted upon for the movement of consignment sales/branch transfer from Tamil Nadu to other States. The circular having been issued by the Department head would definitely bind the Assessing Officer. Therefore, to disallow the transaction solely based on non production of transit pass is not the correct interpretation adopted by the Assessing Officer.
7. Thus, for the above reasons, the impugned order calls for interference. Accordingly, the Writ Petition is allowed and the impugned order dated 30.11.2005 passed by the respondent in TNGST No.1220086/2002-03 is set aside. No costs. Consequently, connected Miscellaneous Petition is closed.
02.08.2017 gya Index : Yes/No Internet : Yes/No T.S.SIVAGNANAM, J.
gya To The Commercial Tax Officer, Washermanpet-I Assessment Circle, No.20, Kummalamman Koil Street, Chennai-81.
WP.No.8927 of 2006 02.08.2017