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S. RAVINDRA BHAT, DIPANKAR DATTA
Santhosh Maize & Industries Limited – Appellant
Versus
State of Tamil Nadu – Respondent
JUDGMENT :
DIPANKAR DATTA, J.
THE CHALLENGE
The present appeals before us, by special leave, have been carried by the appellant from orders passed by a Division Bench of the Madras High Court (“High Court”, hereafter). While the judgment and order 8th dated September, 2008 dismissing the Writ Petition No. 14283 of 1999 instituted by the appellant is challenged in C.A. No. 5731 of 2009, the order dated 10th February, 2009 dismissing a review application2[Review Application No. 135 of 2008 in W.P. No. 14283 of 1999] seeking a review of the aforesaid judgment and order is under challenge in C.A. No. 5732 of 2009.
RELEVANT FACTS
2. The relevant facts, leading to institution of the present appeals, are noticed hereunder:
a) The appellant, registered under the Tamil Nadu General Sales Tax Act, 1959 (“the Act”, hereafter), deals in maize starch since 1975. The classification of maize starch under the Act is the subject of dispute in the first of the two appeals.
b) The Government of Tamil Nadu, vide a Notification3[No. 89 of 1970 dated 14th March, 1970] (“Exemption Notification”, hereafter
Where a statute contains both a general provision as well as a specific provision, latter must prevail.
Exemptions under G.O.Ms. No. 1091 are general under state law but do not qualify as general exemptions under the Central Sales Tax Act due to specific conditions in the exemption notification.
The main legal point established in the judgment is the application of the 'common parlance test' and the commercial understanding of terms in tax provisions to determine the classification of goods ....
The court confirmed the legality of surcharge and denied exemption claims on 'maida', emphasizing the obligation to inform taxpayers of assessment bases to ensure due process.
The amendment to Section 8(5) of the CST Act does not retrospectively affect previously granted tax exemptions, which remain valid unless revoked with notice.
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