The High Court allowed a writ petition challenging a non-noticed letter issued by SIPCOT that modified the period of a sales tax waiver scheme granted to the petitioner, setting aside the order for lack of audi alteram partem.
The impugned letter dated 03.07.2003 issued by SIPCOT was set aside, and the writ petition was allowed. No costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P.No.21931 of 2003
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 10.06.2022
CORAM
THE HONOURABLE DR. JUSTICE ANITA SUMANTH
W.P.No.21931 of 2003
Sambandam Solvent Extraction Ltd. No.97, Thulasingam Street Perambur, Chennai.
.... Petitioner
Vs.
.... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari to call for the records of the case on the file of the first
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respondent herein in Letter No.ID/ST/SSEL/2002 dated 03.07.2003 and quash the same.
For Petitioner : Ms.Lakshmi Sriram
For Respondents : Mr.Ramesh Venkatachalapathy for R1
Mr.V.Prashanth Kiran
Government Advocate for R2 & R3.
ORDER
Heard Ms. Lakshmi Sriram, learned counsel for the petitioner, Mr. Ramesh Venkatachalapathy, learned Counsel for the State Industries Promotion Corporation of Tamil Nadu Ltd. (SIPCOT) and Mr. V. Prashanth Kiran for the Assistant Commissioner & the Commercial Tax Officer, Chennai.
relevant clauses read as follows:-
“ 3.Based on the above, the holder of this eligibility certificate will be eligible for waiver of sales tax for a sum not exceeding Rs.232.35 Lakhs (Rupees Two hundred and thirty two lakhs and thirty five thousand only) under the waiver the holder's unit commenced its commercial production i.e., from 01.03.2000 to 28.02.2005.
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3.1.Based on the above, the holder of this Eligibility Certificate will be eligible for waiver of sales tax for a sum not exceeding Rs.232.35 Lakhs (Rupees Two Hundred and Thirty Two Lakhs and Thirty Five Thousand Only) under the waiver scheme for the five years from the month in which the holder's unit commenced its commercial production i.e., from 1.03.2000 to 28.2.2005.
4. The actual amount waived shall however, be the lease of the amount mentioned in 4.1 and 4.2 below:
4.1. Notional Sales tax liability on account of Tamil Nadu General Sales Tax Additional Sales Tax, Surcharge and Additional Surcharge which would have accrued during the period of waiver in favour of Government, but for the waiver on the sale of finished goods manufactured by the unit.
4.2.100% of the value of the initial gross fixed assets i.e., Rs.232.35 Lakhs (Rupees Two Hundred and Thirty Two Lakhs and Thirty Five Thousand Only).”
Commercial taxes department to the effect that the holder of the eligibility certificate would be eligible for waiver of sales tax for a sum not exceeding Rs.232.35 Lakhs (Rupees Two Hundred and Thirty Two Lakhs and Thirty Five Thousand Only). The agreement also provides for waiver, as a consequence of the tax benefit, of liability to Additional Sales Tax, Surcharge and Additional Surcharge.
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modified by virtue of insertion of an additional clause, paragraph 5 below, that reads as under:
10.06.2022
nst
Index : Yes / No Speaking Order
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W.P.No.21931 of 2003
To
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W.P.No.21931 of 2003
Dr.ANITA SUMANTH,J.
nst
W.P.No.21931 of 2003
10.06.2022
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1 issue framed by the court
Whether SIPCOT issued a valid amendment to the sales tax waiver scheme without prior notice or opportunity to be heard to the petitioner.
2 provisions across 2 enactments
Sambandam Solvent Extraction Ltd.
The State Industries Promotion Corporation of Tamil Nadu Ltd.
The Assistant Commissioner Commercial Taxes, Zone VIII
The Commercial Tax Officer Perambur-I Circle
DR. JUSTICE ANITA SUMANTH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
