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Dated : 09.08.2023

 CORAM: THE HONOURABLE DR.JUSTICE ANITA SUMANTH AND THE HONOURABLE MR.JUSTICE R.VIJAYAKUMAR

T.C,(MD).No.174 of 2012

 

Introduction:

The case of M/s. Saghay Rubber Products vs. Joint Commissioner (CT) & Commercial Tax Officers revolves around a tax dispute pertaining to the classification and taxation rate of rubber fan belts manufactured and sold by the appellant, M/s. Saghay Rubber Products. The dispute centers on whether these fan belts should be taxed as automobile spare parts and accessories under specific entries or as rubber products under a general entry. The appellant challenges the order of the Joint Commissioner (CT)-III, who initiated suo moto revision proceedings under Section 34 of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act).

 

Factual Background:

M/s. Saghay Rubber Products is engaged in the manufacture of automobile fan belts, specifically catering to two-wheelers and tractors. The initial assessment by the Commercial Tax Officers taxed these fan belts at 5% and 3% for two-wheelers and tractors, respectively. However, a re-assessment was conducted, classifying the goods under Entry 50(vi) of Part-D of the TNGST Act, which led to an 8% tax rate.

Legal Issues:

Whether the rubber fan belts are correctly classified under Entry 50(vi) of Part-D or should be classified under specific entries for automobile spare parts.

Whether the first respondent’s suo moto revision powers were exercised correctly and fairly.

Arguments:

The appellant’s counsel argued that the fan belts manufactured and sold by the appellant were exclusively meant for two-wheelers and tractors. These should be classified as spare parts and accessories, attracting tax rates of 5% and 3% under specific entries for two-wheelers and tractors, respectively. The appellant contended that Entry 50(vi) in Part-D dealt with conveyor belts and had no relevance to the products in question.

On the other hand, the respondents’ counsel contended that the fan belts were not limited to motor vehicles but were also used as spare parts for other machinery. Therefore, they argued that the first respondent correctly classified the products under Entry 50, considering them as rubber products, which warranted an 8% tax rate.

Judgment and Analysis:

The court examined the submissions of both parties and the relevant legal provisions. The court observed that the fan belts manufactured by the appellant were meant for two-wheelers and tractors, and the invoices substantiated this fact. Consequently, the court found that the specific entries for two-wheelers and tractors (Entry 30 of Part-C and Entry 27 of Part-B, respectively) were applicable.

The court also cited the principle that when there is a specific entry applicable to a particular item, it cannot be classified under a general entry. It referred to the judgment in State of Tamil Nadu vs. P.M. Engineering and Co., wherein it was established that specific entries take precedence over general entries. As a result, the court concluded that the fan belts in question should not have been classified under Entry 50(vi) but under the specific entries for two-wheelers and tractors.

The court also noted that the first respondent’s selective exercise of suo moto powers for specific assessment years raised questions about the fairness and consistency of the process.

Conclusion:

The court allowed the tax case in favor of the appellant, setting aside the impugned order. It held that the rubber fan belts manufactured and sold by M/s. Saghay Rubber Products should be classified under specific entries for two-wheelers and tractors, attracting the respective tax rates of 5% and 3%. The court emphasized the principle of specificity in classification and indicated that general entries should not override specific ones. This case analysis highlights how legal interpretation and precedent play a crucial role in resolving taxation disputes, ensuring consistency and fairness in the application of tax laws.

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Written by- Shreeya S Shekar

 

 

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K.Nagasundaram vs The Regional Transport Officer

Decided on: 14 July, 2023

CORAM : THE HONOURABLE MRS.JUSTICE S.SRIMATHY

Introduction

In a recent legal case, K. Nagasundaram challenged an order by the Regional Transport Officer (RTO) and Licensing Authority that suspended his driving license. The suspension arose from a road traffic accident that occurred on May 3, 2023, involving a bus driven by Nagasundaram. The accident resulted in a fatality and led to a criminal case being registered against him. Nagasundaram filed a writ petition, seeking the quashing of the suspension order, claiming that it was premature and lacked proper legal grounds.

Case Background

2023. Nagasundaram, the petitioner, was involved in a road traffic accident that led to the unfortunate death of a person on May 3, 2023. Following the incident, a First Information Report (FIR) was filed, and a criminal case was initiated against Nagasundaram under Sections 279 and 304(A) of the Indian Penal Code (IPC). Subsequently, on May 5, 2023, the petitioner’s driving license was retained by the Motor Vehicle Inspector after the bus involved in the accident was inspected. This action was taken even before the completion of the criminal investigation.

Legal Arguments

The petitioner’s counsel argued that the suspension of Nagasundaram’s driving license was premature and violated due process. They contended that the suspension order, dated June 25, 2023, was passed without waiting for the criminal court or the Motor Accident Claims Tribunal to establish Nagasundaram’s guilt. The petitioner’s legal team cited a previous judgment to support their claim that suspending a driving license before the conclusion of legal proceedings could be considered prejudgment and inconsistent with the Motor Vehicles Act, 1988.

Court’s Decision

The Honorable Mrs. Justice S. Srimathy presided over the case and heard arguments from both sides. After considering the petitioner’s contentions and reviewing the impugned order, the court found merit in Nagasundaram’s arguments. The court observed that the suspension order was indeed vulnerable on multiple grounds. It noted that neither the criminal court nor the Claims Tribunal had determined Nagasundaram’s guilt at the time the suspension order was passed. The court emphasized that the petitioner was not given a fair opportunity for personal hearing, as required by Section 19(1) of the Motor Vehicles Act, 1988.

Drawing on a previous Division Bench decision, the court emphasized that invoking Section 19(1)(c) necessitated showing that the motor vehicle was used in the commission of a cognizable offense. The court agreed with Nagasundaram’s counsel that the suspension order seemed to pre-judge the issue before proper legal proceedings had taken place.

Conclusion

The court, taking into account the previous judgment and the principles of due process, proceeded to quash the impugned order dated June 25, 2023, that suspended Nagasundaram’s driving license. The court directed the authorities to return the original driving license to the petitioner within a week from the date of the court’s order. The court clarified that this decision did not bar the RTO from proceeding with further actions if any of the contingencies specified in the Motor Vehicles Act, 1988, had arisen or if any prescribed rules were violated.

This ruling reinforces the importance of adhering to due process and avoiding prejudgment in cases involving driving license suspensions. It underscores the necessity of awaiting the conclusion of legal proceedings before taking such actions, ensuring that individuals are treated fairly and their rights are upheld.

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C.Kumar vs The Assistant Director

Decided on :14 July, 2023

CORAM : THE HON’BLE DR.JUSTICE D.NAGARJUN

Introduction:

Writ Petition (MD) No.15645 of 2023, C. Kumar vs. The Assistant Director and Others, was brought before the Madurai Bench of Madras High Court, presided over by Dr. Justice D. Nagarjun. The petitioner, C. Kumar, sought a writ of certiorarified mandamus to challenge the order of the Assistant Director of the Animal Husbandry Department dated 20.06.2023, which denied permission for conducting a traditional event called “Kida Muttu” or Goat Fight. The case involved balancing cultural traditions with animal welfare concerns.

 

Factual Background:

The petitioner, a member of the association “Arivu Nanbargal Kuzhu,” sought permission to conduct the annual Kida Muttu event at Thenpalanji Village in Madurai South Taluk on 15.07.2023, between 08:00 a.m. and 03:00 p.m. The Government of Tamil Nadu had previously amended the Prevention of Cruelty to Animals (Tamil Nadu Amendment) Act, 2017, permitting Kida Muttu in various places with certain conditions. The petitioner relied on a previous court order, W.P.(MD) No.11751 of 2023, where a similar event was allowed with specific conditions.

Petitioner’s Argument:

The petitioner’s counsel, Mr. M. Raghuman Khan, argued that Kida Muttu had been a traditional event in the village for decades, without causing harm to the animals involved. He highlighted that the government had permitted similar events in other places, and the petitioner was willing to adhere to all safety measures and guidelines issued by the Animal Husbandry Department. The petitioner also mentioned that they had previously sent a representation seeking permission, followed by a writ petition (W.P.(MD) No.13539 of 2023) when no response was received from the police.

Respondent’s Submission:

The learned Government Advocate (Crl. Side), Mr. S. S. Madhavan, representing the respondents, cited the proceedings of the Assistant Director of the Animal Husbandry Department and the Commissioner of Animal Husbandry and Veterinary Services, Chennai. These proceedings indicated that Kida Muttu was not considered a lawful event under the Prevention of Cruelty to Animals (Tamil Nadu Amendment) Act, 2017, even after the amendment.

Court’s Decision:

Considering the petitioner’s arguments and the previous court order (W.P.(MD) No.11751 of 2023), where Kida Muttu was allowed under specific conditions, Justice D. Nagarjun quashed the impugned order of the Assistant Director dated 20.06.2023. The court directed the respondents to grant permission to conduct the Kida Muttu event on 19.07.2023. The petitioner and other organizers were instructed to strictly adhere to the conditions imposed in the earlier order (W.P.(MD) No.11751 of 2023) and file an affidavit of undertaking to that effect before the police.

Conclusion:

The case of C. Kumar vs. The Assistant Director illustrates the delicate balancing act courts must perform between cultural traditions and animal welfare concerns. While respecting the traditional practices of the community, the court also ensures that animal welfare is safeguarded through the imposition of specific conditions. This judgment reiterates the importance of respecting cultural practices while upholding the principles of compassion and responsible conduct towards animals

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Written by- Shreeya S Shekar

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