Sales tax deferment scheme under Tamilnadu General Sales Tax Act, 1959 – Whether the deferment is admissible from the base production volume or base sales volume?

As per the clarification issued by the Commissioner of Commercial Taxes, in exercise of the power conferred on him under Section 28A of the TNGST Act, the benefit of sales tax deferral scheme would be available to a dealer from the date of reaching of BPV or BSV, whichever is earlier. It is trite law that circulars issued by the revenue are binding on the departmental authorities and they cannot be permitted to repudiate the same on the plea that it is inconsistent with the statutory provisions or it mitigates the rigour of the law. Appeal rejected.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 4233 of 2007

STATE OF TAMIL NADU & ANR

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