IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 09.12.2025 CORAM :

THE HONOURABLE DR.JUSTICEANITA SUMANTH and THE HONOURABLE MR.JUSTICE MUMMINENI SUDHEER KUMAR T.C.(A) Nos. 22, 23 & 24 of 2013 and M.P.Nos.1, 1 & 2 of 2013 M/s. Farida Shoes Private Ltd., No.17, Jalal Road Extension, Ambur. .. Appellant in T.C(A)No.22/2013 M/s. Farida Leather Ware Private Ltd., No.17/2, T.Abdul Razak Street, Ahmed Nagar, Ambur. .. Appellant in TC(A)No.23/2013 in TC(A)No.24/2013 vsvvs The State of Tamil Nadu Rep. by Deputy Commissioner (CT)

Now known as Joint Commissioner (CT)

Vellore Division, Vellore .. Respondent in all appeals Prayer in TC(A). No. 22 of 2013 : Appeal filed under Section 38 of the TNGST Act, 1959 against the order of Sales Tax Appellate Tribunal (Main Bench), Chennai dated 18.10.2012 passed in STA No. 257 of 2007. Prayer in TC(A) No. 23 of 2013 : Appeal filed under Section 38 of the TNGST Act, 1959 against the order of Sales Tax Appellate Tribunal (Main Bench), Chennai dated 18.10.2012 passed in STA No. 266 of 2007.

Prayer in TC(A) No. 24 of 2013 : Appeal filed under Section 38 of the TNGST Act, 1959 against the order of Sales Tax Appellate Tribunal (Main Bench), Chennai dated 18.10.2012 passed in STA No. 272 of 2007.

For Appellant : Mr.V.Sundareswaran (in all appeals)

For Respondent : Mr.C.Harsha Raj Special Government Pleader (in all appeals)

COMMON JUDGMENT (Delivered by Dr. ANITA SUMANTH.,J)

These are three appeals by two assessees under the provisions of the Tamil Nadu General Sales Tax Act, 1959 (in short ‘Act’) for the period 2003-04 [TC(A)No.22 of 2013] in the case of one assessee, and for the periods 2003-04 and 2002-03 [TC(A)Nos.23 and 24 of 2013] in the case of the other assessee.

2. Both assessees admittedly hold the status of 100% Export Oriented Undertakings (EOU). Returns of turnover were filed by the assessees seeking exemption in respect of certain sales made to each other, of aluminium sole moulds and cutting dyes. Exemption was claimed under Serial No.386 of G.O.Ms.528, CT&RE, dated 21.11.1997, gazetted on 17.12.1997.

3. The assessments came to be completed by orders dated

22.06.2005, 18.03.2005 and 11.05.2004 accepting the claim for exemption. Thereafter proceedings for revision of assessment were initiated under Section 16 of the Act as the assessing authority of the view that there has been escapement of turnover.

4. The revision of assessments came to be concluded on

27.07.2006 and 11.07.2006. Before the assessing authority, the consistent stand of the assessees was based on Notification dated 21.11.1997 that would require the supply to be of the nature of either raw materials, packing materials or consumable goods.

5. The exemption claimed was ultimately disallowed on the ground that neither the moulds nor the dyes were of the nature of raw materials, packing materials or consumable goods. This order was reversed by the first appellate authority and, in appeals filed at the instance of the revenue, there was a cleavage of opinion, one member accepting the position that the dyes and moulds were consumables, and the other member dissenting from that view.

6. The present appeals have been filed by the assessees assailing that opinion adverse to them. We are hence called upon to decide the eligibility of the assessees to exemption as claimed, and the correctness of the imposition of penalty under Section 16(2) of the Act. Questions of law admitted for resolution on 19.09.2013 read thus:

‘1.Whether the Appellate Tribunal was justified in overlooking the written submissions dated 01.02.2010 along with documents filed under Regulation 12 of the Tamilnadu Sales Tax Appellate Tribunal Regulation, 1959 dated 25.01.2011 in TMP.No.4 of 2011 and detailed typed-set of papers of 174 pages enclosing the judgments and clarifications.

2.Whether the Appellate Tribunal overlooked the law that reassessment under Section 16 of the Tamilnadu General Sales Tax Act, 1959 ought not to be made on a mere change of opinion without any other mater