Sri Muruga Vilas Oil Mill vs. The Commerical Tax Officer-I

Held

The Court held that the amendment brought by G.O.No.47 dated 27.03.2012, effective from 01.04.2012, did not change the position regarding the taxability of oil cakes; rather, it supported the assessee's claim. Entry 145(ii)/Part B/Schedule I, which imposes a 5% tax, was amended to apply only to vegetable oils and oil cakes other than those referred to in Schedule IV. Consequently, all oil cakes, including de-oiled cakes, as specified in Entry 5/Part B/Schedule IV, stand outside the ambit of tax absolutely, as per the Clarification dated 14.03.2014. The Court found that the Authority for Clarification and Advance Ruling's conclusion that 'De-oiled copra cake' is exempt from tax absolutely by application of Entry 5/Part B/Schedule I was correct. Regarding the reversal of Input Tax Credit, the Court noted that the details used by the respondent were not furnished to the petitioner. Therefore, this issue was remitted for decision de novo after providing adequate opportunity to the petitioner.

Facts

The petitioner, Tvl.Sri Muruga Vilas Oil Mill, is a dealer in oil cakes, including vegetable and de-oiled cakes. The petitioner sought exemption from tax on their turnover under Entry 66 of Part-B of Schedule IV to the Tamil Nadu Value Added Tax Act, 2006, for the tax periods 2012-2013, 2013-2014, and 2014-2015. The respondent, the Commercial Tax Officer, issued assessment orders dated 14.09.2015 and 30.12.2016, denying the claimed exemption, bringing the entire turnover of vegetable oil cakes to tax, and imposing equal time addition and penalty. The petitioner challenged these orders, arguing that the exemption was valid. An inspection had revealed discrepancies, leading to pre-assessment notices and subsequent assessments. The core of the dispute revolves around the interpretation of amendments to the Act concerning the taxability of oil cakes.

Key Issues

1. Whether the petitioner is entitled to exemption from tax on the sale of oil cakes, including de-oiled cakes, under Entry 66 of Part-B of Schedule IV read with Entry 145(ii) of Part-B of Schedule I to the Tamil Nadu Value Added Tax Act, 2006, for the periods 2012-2013, 2013-2014, and 2014-2015, particularly in light of the amendment brought by G.O.No.47 dated 27.03.2012. Petitioner's arguments: The petitioner contended that exemption was available for oil cakes, including de-oiled cakes, as per Entry 66 of Schedule IV, and that the amendment did not withdraw this exemption. They relied on the Authority for Clarification and Advance Ruling's clarification dated 14.03.2014, which held that 'De-oiled copra cake' is exempt from tax absolutely by application of Entry 5/Part B/Schedule I. The petitioner argued that Entry 145(ii)/Part B/Schedule I, as amended, applies only to vegetable oils and oil cakes other than those specified in Schedule IV, thus excluding their goods from tax. Revenue's arguments: The revenue argued that the Clarification dated 14.03.2014 did not take into account the amendment inserted effective 01.04.2014 by G.O.47 of 2012. The revenue also reversed Input Tax Credit based on discrepancies noted from web reports, which were not furnished to the petitioner.