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The State Of Tamil Nadu Rep.By vs Thiru.V.R.Jothi Kumar

Madras High Court|18 December, 2009

JUDGMENT / ORDER

(Judgment of the Court was delivered by K.RAVIRAJA PANDIAN,J.) The revision is filed at the instance of the revenue against the order of the Sales Tax Appellate Tribunal (Main Bench), Chennai in T.A.No.482/99 and C.O.P.No.779/99 dated 17.7.2000 relating to the assessment year 1994-95 questioning the correctness of the deletion of penalty imposed under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act and the Additional Sales Tax Act.
2. The issue as to whether during the relevant period i.e., assessment year 1994-95, the penalty invoking the adoptation provision of T.N.G.S.T.Act can be imposed on Additional Sales Tax Act has been questioned before the Division Bench of this Court in the case of EASTERN ELECTRICS VS. STATE OF TAMIL NADU and CHAKRAPANI OIL & RICE MILLS VS. STATE OF TAMIL NADU reported in (2009) 22 VST 544 following an unreported judgment and held as follows:
"The reference to the Tamil Nadu General Sales Tax Act, 1959, in section 2(1)(b) of the Tamil Nadu Additional Sales Tax Act, 1970, was to provisions of the said Act "in relation to tax" only and nothing more. That is why after the decision in Karthik Roller Flour Mills Pvt.Ltd. Vs. State of Tamil Nadu (Writ Petition Nos.6777 and 6778 of 2001 decided on August 14, 2002) the Legislature amended section 2(1)(b) to include the words "and interest". If it was the intention of the Legislature that the entire gamut of the provisions of the 1959 Act were to be applied to the 1970 Act then it could very well have said so. Thus the 1970 Act as it reads before the insertion of section 3B with effect from April 16, 1997 had no charging provision. Section 3B with effect from April 16, 1997 had no charging provision. Section 3B is not a clarificatory section. It introduces the power to levy penalty for the first time. A charging section is substantive law and in the absence of substantive provision in the 1970 Act itself relating to levy of penalty the provisions of Tamil Nadu General Sales Tax Act cannot be the source of power of such levy. Similarly unless there is a charging section for levy of penalty there can be no automatic reading of the power to levy penalty. Thus penalty cannot be levied under the 1970 Act for the periods prior to April 16, 1997."
3. It is unfortunate that such an important decision "Karthik Roller Floor Mills (P) Ltd. Vs. State of Tamil Nadu" (W.P.Nos.6777 and 6778 of 2001), which formed basis for bringing out an amendment in the Additional Sales Tax Act, still remains to be an unreported judgment, without being reported in any law journals.
4. In the light of the above said Division Bench decision of this Court, the order of the Tribunal impugned in this revision is confirmed and the revision is dismissed.
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Title

The State Of Tamil Nadu Rep.By vs Thiru.V.R.Jothi Kumar

Court

Madras High Court

JudgmentDate
18 December, 2009