IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 24.04.2007 CORAM THE HON'BLE MR.JUSTICE P.D.DINAKARAN AND THE HON'BLE MR.JUSTICE P.P.S.JANARTHANA RAJA W.A.Nos.465 of 2007, 909, 199 and 200 of 2006,1882 of 2005 W.P.Nos.6123 to 6126, 30250 and 30251 of 2005, 47132 of 2002, 28798 of 2004,,1830 to 1832, 2410 to 2412, 2640, 2641, 3131, 3132, 3254, 3255, 3593, 3617, 3408, 3409, 3919, 6328, 6329, 8822, 9309, 9310, 9399, 9400, 9742, 12393, 12499, of 2006, M.P.No.1 of 2007, 1 of 2006, W.A.M.P.No.3474 of 2005,467, 468 of 2006, W.P.M.P.Nos.68353 of 2002, 34987 of 2004, 6730 to 6733, 33161 and 33162 of 2005, 2090 to 2092, 2630, 2631, 2633, 2747, 2749, 3273, 3275, 3427, 3429, 3815, 3834, 3628, 3629, 4162, 6823, 6325, 9759, 10307, 10308, 10389, 10390, 10871, 13994 and 14102 of 2006 W.A.No.465 of 2007 M/s.Hotel Shri Kannan rep. by its Managing Partner T.Thanushgaran No.753, Brough Road Erode – 1. .. Appellant Vs. 1. The State of Tamil Nadu rep. by the Secretary to Government Department of Commercial Taxes & Religious Endowments Fort St.George, Chennai-9. 2. The Commercial Tax Officer Brough Road Circle Erode. .. Respondents https://hcservices.ecourts.gov.in/hcservices/ W.A.909/06 M/s. Shri Annapoorna Shri Gowri shankar Hotels Pvt Ltd. Coimbatore represented by its Executive Director Finance D. Srinivasan ... Appellant in W.A.909/06 VS The Commercial Tax Officer (FAC) R.S. Puram East Circle Coimbatore. ... Respondent in W.A.909/06 W.A.Nos.199 and 200/2006 M/s. Synthitic Industrial Chemicals Ltd., Maruthur, Karamadai Mettupalayam Taluk. ... Appellant in W.A.Nos.199 and 200/06 Vs The Commercial Tax Officer Mettupalayam ... Respondent in W.A.Nos.199/06 and 200/06 W.A.Nos.1882/05, W.P.Nos.6123 to 6126 of 2005, 28798 of 2004 Tvl. Sakthi Trading Company rep by its Proprietor P.C. Duraisami S.F.NO.1052 Perumapalayam Mullampatti Post ... Appellant in W.A.No.1882/05, W.P.Nos.6123 to 6126 of 2005, 28798 of 2004 VS 1. The State of Tamilnadu rep by its Secretary to Government Commercial Taxes and Religious Endowment Department, Fort St. George, Chennai-9. https://hcservices.ecourts.gov.in/hcservices/ 2. The Commercial Tax Officers Perundurai Assessment Circle Perundurai, Erode District. ... Respondents in W.A.Nos.1882/05, W.P.Nos.6123 to 6126 of 2005, 28798 of 2004, 9399 & 9400 of 2006 Tv. Duraisamy Food & Spices (P) Ltd., Rep by its Manager M. Nachiyappan Mullampatti Post ... Petitioner in W.P.6124/05 Tvl. Santhi Devi Spices (P) Ltd., Rep by its Manager N.Nachiyappan Mullampatti Post ... Petitioner in W.P.6125/05 Tvl. Sakthi Hitech Foods (India) P Ltd., Rep by its Manager N.Nachiyappan Mullampatti Post ... Petitioner in W.P.6126/05 & 9399/06 Tvl. AAR AAR Foods rep by its Proprietrix Annama Rasan Erode ... Petitioner in W.P.Nos.30250 and 30251/05 M/s. Aditya Trading Company rep by its Proprietor Hari Poddar Erode. ... Petitioner in W.P.No.47132/02 M/s. K.S. Shahul Hameed rep by its Proprietor K.s. Shahul Hameed Erode. ... Petitioner in W.P.Nos.1830 to 1832 of 2006 M/s Amar Exports rep by its Prop. A. Sanjeevkumar Erode. ... Petitioner in W.P.Nos.2410 to 3593 of 2006 M/s. Sunrise Spices Ltd., rep by its Manager Kailash Chand Sharma Erode. ... Petitioner in W.P.Nos.2411/06, 3255/06 https://hcservices.ecourts.gov.in/hcservices/ M/s. Nitin Trading Co. Rep by its Proprietor Nithin Kumar, Jaiswal, Erode. ... Petitioner in W.P.2412/06 M/s. Shree Trading Company rep by its Proprietor P. Jayakumar, Erode. ... Petitioner in W.P.2640/06 M/s. Shree Krishna Trading Co rep by its Proprietor Sunil Kumar, singhal, Erode. ... Petitioner in W.P.2641/06 M/s. Dhiraj International rep by its Proprietor Dhiraj Jaiswal Erode. ... Petitioner in W.P.Nos.3131 and 3132/06 M/s. Chanchal Exports rep by its Proprietor Chanchal Jaiswal Erode. ... Petitioner in W.P.Nos.3254 /06, 3617/06 M/s. Shakthi Enterprises rep by its Partner K.V. Ravishankar Erode. ... Petitioner in W.P.Nos.3408 and 3409/06 Krishna Enterprises rep by its Proprietor Bimala Devi, Erode. ... Petitioner in W.P.No.3919/06 Shri Jagadambal Traders rep by its Proprietor Sakunthala Devi Khetan, Erode. ... Petitioner in W.P.Nos. 6328 & 6329 of 2006 M/s.Gokul Trading Company rep by its Partner T. Bagavathiappan Erode. ... Petitioner in W.P.No.8822/06 https://hcservices.ecourts.gov.in/hcservices/ M/s. Synthite Industrial Chemicals Ltd., Karamadai, Mettupalayam Taluk. ... Petitioner in W.P.Nos.9309 & 9310/06 Tvl. Duraisamy Foods and Spices Pvt. Ltd., rep by its Manager M. Nachiappan Perumalpalayam, Mullampatti. ... Petitioner in W.P.No.9400/06 Tvl. Hari Narayana Chabil Chand rep by its Partner Dinesh Chandra Agarwal Erode. ... Petitioner in W.P.No.9742/06 M/s. Nani Agro Foods Pvt Ltd., Erode. ... Petitioner in W.P.12393/06 M/s. Aditya Spices Pvt Ltd., Erode. ... Petitioner in W.P.NO.12499/06 VS The Commercial and Special Commissioner of Commercial Taxes Ezhilagam, Chennai ... Ist Respondent in W.P.Nos.30250 and 30251 of 2005 The Commercial Tax Officer Chithode Assessment Circle Erode. ... 2nd Respondent in W.P.Nos.30250 and 30251 of 2005 State of Tamilnadu rep by its Secretary Commercial Taxes Department Chennai-9. ... Ist Respondent in W.P.No.47132/02 The Commercial Tax Officer Park Road Circle Erode. ... 2nd Respondent in W.P.No.47132/02 Respondent in W.P.Nos.1830 to 1832 of 2006, 2410 to 2412 of 2006, 2640/06, 3131 & 3132/06, 3254 & 3255 of 2006, 3593/06, 3617/0, 6328, 6329 of 2006 https://hcservices.ecourts.gov.in/hcservices/ The Deputy Commercial Tax Officer Park Road Circle, Erode. ... Respondent in W.P.Nos.2641 of 2006, 3919/06, 9742/06 The Commercial Tax Officer Sathy Road Circle, Erode. ... Respondent in W.P.Nos.3408 and 3409/06 The Commercial Tax Officer (FAO) Chithode Circle, Erode. ... Respondent n W.P.Nos.8822 of 2006, 12393/06 The Commercial Tax Officer Mettupalayam. ... Respondent in W.P.Nos.9309 and 9310 of 2006 The Commercial Tax Officer (FAC) Park Road, Circle, Erode. ... Respondent in W.P.12499/06 Writ Appeals preferred under Clause 15 of the Letters patent against the orders of this Court 1. dated 6.12.07 in W.P.NO.33459 of 2005 W.A.465/07 2. dated 22.6.06 in W.P.NO.18966 of 2006 3. dated 13.12.05 in W.P.NO.39779 of 2005 4. dated 13.12.05 in W.P.NO.39780 of 2005 5. dated 13.9.05 in W.P.No.29320 of 2005 respectively. W.P.Nos.33459/05, 18966 of 2006, 39779 and 39780 of 2005, 29320 of 2005. Writ Petitions presented under Article 226 of the Constitution of India to issue a writs of certiorari calling for the records on the file of the second respondent herein in his proceedings in TNGST NO.3001666/2001-2002 dated 6.10.2003 and set aside the same. (in W.P.No.33459 of 2005) 2. Certiorarified Mandamus a. calling for the records on the file of the Respondent herein in his proceedings in TNGST NO.1941761/1999-2000 dated 28.3.2006 and quash the same and further directing the respondent not to levy purchase Tax on the Turmeric Powder chllies, Coriander and Tamarind purchased by the Petitioner for own consumption in as much as the Petitioners total turnover is below Rs.300 crores. https://hcservices.ecourts.gov.in/hcservices/ b. Calling for the records of the Respondent in TNGST Asst.No.2040530/2002-03 and 2003 -2004 respectively quash the notice dated 23.9.2005 and 26.9.2005 respectively issued therein and further directing the respondent not to levy purchase tax on the turmeric purchased by the Petitioner and exported out of the country or sent by way of branch transfer in as much as the petitioner's total turnover is below Rs.300 crores. (in W.P.Nos.39779/05 and 29780/05) 3. Writ of certiorari calling for the records relating to the pre- Revision notice issued by the 2nd respondent dated 18.7.2005 in respect of the Petitioners TNGST Asst.No.2920699 for the Assessment year 2000-2001 and quash the same. (in W.P.No.29320/05) Writ Petitions Petitions presented under Article 226 of the Constitution of India to issue a writ of certiorari 1. calling for the records relating to the pre-revision notice issued by the Second Respondent dated 13.12.2004 in respect of the Petitioners TNGST Assessment number 2920699 for the Assessment year 2002-2003 and to quash the same. (in W.P.6123 of 2005) 2. calling for the records relating to the notice issued by the second respondent dated 2.2.2005 in respect of the Petitioner TNGST assessment Nos.2922204, 2922745 and 2922821 respectively for the Assessment year 2003-2004 and to quash the same.(in W.P.Nos.6124 to 6126 of 2005) 3. calling for the records relating to the proceedings of the second respondent dated 30.6.2005 in TNGST No.3063276/2003-04 and 2002-03 respectively and quash the same. (W.P.Nos.30250 & 30251 of 2005) 4. Writ of Declaration declaring that the letter dated 9.4.2002 of the Commercial Taxes Department by itself in the absence of any valid notifications under Section 59(1) of the T.N. General sales Tax Act cannot bring out an amendment to notification G.O.Ms.No.29 commercial Taxes dated 27.3.2002 and levy the benefit of exemption on the inter state sales turn over of Turmeric (in W.P.No.47132/02) 5. Writ of Certiorari calling for the records relating to the pre revision notice issued by the 2nd respondent dated 10.5.2004 in respect of the petitioners TNGST Assessment No.2920699 for the Assessment year 2001-2002 and to quash the same. (in W.P.No.28798 of 2004) 6. Writ of certiorari calling for the records of the Respondent in his notice in Assessment number 2860022/2003-2004 and https://hcservices.ecourts.gov.in/hcservices/ 2002-03 respectively dated 17.1.2005 and 5.1.2005 respectively and consequential penalty notice in TNGST Assessment No.2860022/2003- 2004 and 2002-03 respectively dated 8.11.2005 and quash the same as illegal. (in W.P.Nos.1830 and 1832 of 2006) 7. Writ of certiorari calling for the records of the Respondent in his notice in TNGST No.2860022/2000- 2001Reg.No.(AG) dated 26.12.2005 and quash the same as illegal. (in W.P.No.1831 of 2006) 8. Writ of certiorari calling for the records of the respondent in his notice in TNGST No.2861593/2001-2002 dated 26.12.2005 and quash the same as illegal. (in W.P.No.2410/06) 9. writ of Certiorari calling for the records of the Respondent in his notice in TNGST Nos.2861784 / 2861653 respectively/2002-2003 dated 5.1.2005 and consequential penalty notice in TNGST Assessment Nos.2861784 and 2861653 respectively/ 2002-2003 dated 8.11.2005 and quash the same as illegal (in W.P.Nos.2411 and 2412 of 2006) 10. Writ of Certiorari calling for the records of the Respondent in his notice in (a) TNGST No.2861754/2002-2003 dated 3.10.2005 and b. TNGST No. 2861177/CST No.603923/2001-02/ 2001-2002 dated 7.11.2005 respectively and quash the same as illegal. (in W.P.No.2640 and 2641/06) 11. Writ of certiorari calling for the records of the Respondent in his notice in TNGST No.2861246/2002-2003 and 2003- 2004 respectively dated 5.1.2005 and 17.1.2005 and consequential penalty notice in TNGST Assessment No.2861246/2002-2003 and 2003- 2004 respectively dated 8.11.2005 and quash the same as illegal. (in W.P.No.3131 and 3132 of 2006) 12. Writ of Certiorari calling for the records of the Respondent in his notice in TNGST Nos.2861085 and 2861784 respectively 2003-2004 dated 17.1.2005 and 19.1.2005 and consequential penalty notice in TNGST Assessment Nos.2861085 and 2861784 respectively / 2003-2004 dated 8.11.2005 and quash the same as illegal. (in W.P.Nos. 3254 and 3255 of 2006) 13. Writ of Certiorari calling for the records of the Respondent in his TNGST Assessment No.2861593/2000-2001 dated 18.1.2006 quash the same as illegal. (in W.P.No.3593/06) 14. Writ of certiorari calling for the records of the Respondent in his notice in TNGST Assessment number 2861085/2002-03 dated 5.1.2005 and consequential penalty notice in TNGST Assessment https://hcservices.ecourts.gov.in/hcservices/ No.2861085/2002-2003 dated 8.11.2005 and quash the same as illegal. (in w.P.No.3617/06) 15. Writ of Certiorari calling for the records of the Respondent in his notice in TNGST No.2875217/2002-2003 and 2003- 2004 respectively dated 30.6.2005 and 14.3.2005 respectively and quash the same as illegal (in W.P.No.3408 and 3409/06) 16. Writ of Certiorari calling for the records on the files of the respondent herein in TNGST NO.2860501/ 2000-2001 dated 7.11.2005 and quashing the proceedings of the Respondent herein in TNGST No.2860501/2000-201 dated 7.11.2005 (in W.P.No.3919/06) 17. Writ of certiorari calling for the records on the files of the Respondent herein in TNGST No.2860507/2001-2002 and 2003-2004 dated 29.12.2005 and 17.1.2005 respectively and quashing the proceedings of the Respondent herein in TNGST No.2860507/2002-2002 and 2003-2004 dated 29.12.2005 and 17.1.2005 respectively. (in W.P.Nos.6328 and 6329 of 2006) 18. Writ of Certiorari calling for the records of the Respondent in his proceedings in TNGST No.3063416/2003-2004 dated 31.1.2006 and quash the same as illegal. (in W.P.No.8822 of 2006) 19. Writ of Certiorari Mandamus calling for the records of the Respondent n TNGST Assessment No.2040530/2002-2003 and 2003-2004 respectively quash the impugned order 28.2.2006 passed therein and further directing the respondent not to levy purchase tax on the Turmeric purchased by the Petitioner and exported out of the country or sent by way of Branch transfer in as much as the petitioners total turnover is below Rs.300 Crores. (in W.P.Nos.9309 and 9310 of 2006) 20. Writ of Certiorari calling for the records relating to the notice issued by the second respondent dated 9.3.2006 and 10.3.2006 respectively in respect of the Petitioners TNGST Assessment number 2922821 and 2922204 for the Assessment year 20040-2005 and to quash the same. (in W.P.No.9399 and 9400 of 2006) 21. Writ of Certiorari calling for the records of the Respondent in his revision notice TNGST No.2860040/2002-2003 dated 13.3.2006 and quash the same as illegal. (in W.P.NO.9742 of 2006) 22. Writ of Certiorarified Mandamus calling for the records of the Respondent in TNGST 3061965 /2003-2004 set aside the notice dated 17.1.2005 issued therein and further directing the respondent not to levy purchase Tax on the Turmeric purchased by the Petitioner and exported out of the Country or sent by way of Branch https://hcservices.ecourts.gov.in/hcservices/ Transfer in as much as the Petitioner total turn over is below Rs.300 crores (in W.P.No.12393/06) 23. Writ of Certiorari Mandamus calling for the records of the Respondent in TNGST No.2861599 /2002-2003 set aside the notice dated 31.5.2005 issued therein and further directing the respondent not to levy purchase Tax on the Turmeric purchased by the Petitioner and exported out of the Country or sent by way of Branch Transfer in as much as th Petitioners total turn over is below Rs.300 crores.(in W.P.No.12499/06) For Appellant : Mr.C.Natarajan, in W.A.No.199/2006 200/06 Senior Counsel and for petitioner for M/s.Pushya Sitaraman in W.P.Nos.9309 & 9310/2006 and W.P.No.12393/2006 & 12499/06 For Appellant in : Mrs.R.Hemalatha W.A.No.465 of 2007 W.A.No.909 of 2006 Mr.R. Gandhi SC for Mr.R.G. Narendhiran Advocate for the Appellant in W.A.1882/05 and for the Petitioner in W.P.Nos.6123 to 6126 of 2005 , 28798 of 2004 and 9399 & 9400 of 2006 Mr.R. Nalliappan, Advocate for the Petitioner in W.P.No.47132/02 Mr.R. Saravanakumar, Advocate for the Petitioner in W.P.No.30250 and 30251 of 2005 Mr.S. Ramanathan, Advocate for the Petitioner in W.P.Nos.1830 to 1832 of 2006, 2410 to 2412 of 2006, 2640 and 2641 of 2006, 3131 and 3132 of 2006, 3254 and 3255 of 2006, 3593, 3617, 3408 and 3409 of 2006, 8822 of 2006, 9742 of 2006 Mr.C. Natarajan, SC for Mr.N. Inbarajan, Advocate for the Petitioner in W.P.Nos.3919, 6328, 6329 of 2006 For Respondents : Mr.Haja Nazirudeen Spl. Government Pleader J U D G M E N T (Delivered by P.D.DINAKARAN,J.) The challenge in these batch of writ appeals and writ https://hcservices.ecourts.gov.in/hcservices/ petitions is as to the power to levy purchase tax under Section 7-A of the Tamil Nadu General Sales Tax Act (for brevity, "the Act") by the Revenue from the respective appellants/petitioners (for brevity, "the Dealers") in the context of the Circular D.Dis.Acts Cell II/75893/99, dated 24.12.1999, as amended by the clarification No.91/2000, D.Dis.Acts Cell II/52300/2000, dated 4.10.2000 issued by the Revenue to the effect that the stock transfer of turmeric to other States is liable to purchase tax under Section 7-A of the Act if it is purchased from unregistered dealers within the State; that purchase tax under Section 7-A of the Act is leviable only if the turnover of the dealer under the Act exceeds Rupees Three hundred crores in a year; that the exemption granted under Third Schedule to the Act is not a general exemption, but on conditional that the sale of turmeric by a dealer whose turnover exceeds Rupees three hundred crores per year does not fall under Third Schedule; that since there is no other entry in the Schedules, such dealers are liable to pay tax at 11% under Entry 67 of Part-D of the First Schedule; and that turmeric in any form such as balls, fingers and powder continue to be the same commodity, if tax was paid in one stage, the subsequent change in forms will not attract sales tax since it is only second sale of the tax suffered commodity. 2. Concededly, the Revenue issued show causes notices to the dealers, who have escaped assessment of purchase tax and have purchased turmeric, an agriculture produce from either agriculturists, marketing committee, householders or unregistered dealers or in some cases from registered dealers. When such show cause notices were challenged in writ petitions, finding that such show causes notices are of pre-revision assessments and the dealers could raise their objections to the same, they were permitted to submit their objections with supporting materials and the Revenue was directed to consider the same and pass appropriate orders in accordance with law. As a result, writ appeals were preferred and other writ petitions challenging the show cause notices were tagged with the writ appeals. 3.1. Mr.C.Natarajan, learned Senior Counsel arguing on behalf of the dealers invited our attention to Sections 2(ooo), 2(q), 2(r) , 7-A, 8, 28-A of the Act and Entry 16 of Part-B of Third Schedule. Our attention was also drawn to the Circular D.Dis.Acts Cell II/75893/99, dated 24.12.1999, as amended by the clarification No.91/2000, D.Dis.Acts Cell II/52300/2000, dated 4.10.2000 issued by the Revenue, the existence of which in the statute book is not denied by the learned Special Government Pleader. 3.2. The core contention of Mr.C.Natarajan, learned Senior Counsel for the dealers is that the Revenue, having issued Circular D.Dis.Acts Cell II/75893/99, dated 24.12.1999, as amended by the clarification No.91/2000, D.Dis.Acts Cell II/52300/2000, dated https://hcservices.ecourts.gov.in/hcservices/ 4.10.2000, either by exercise of the power conferred under Sections 8 or 28-A of the Act, as the case may be, is bound by the same, as the same are in force. In this regard, reliance was placed on the decision of the Division Bench of this Court in Mohan Breweries & Distilleries Ltd. v. Commercial Tax Officer (139 STC 477), to which one of us was a party (P.D.DINAKARAN,J.), wherein the below stated decisions of the Apex Court and other High Courts were followed: i.STATE BANK OF TRAVANCORE v. C.I.T., [1986] 158 ITR 102 (SC); ii.KESHAVJI RAVJI & CO. v. COMMISSIONER OF INCOME TAX, [1990] 183 ITR 1 (SC); iii.COLLECTOR OF CENTRAL EXCISE, PATNA v. USHA MARTIN INDUSTRIES, [1998] 111 STC 254 (SC); iv.PAPER PRODUCTS LTD. v. COMMISSIONER OF CENTRAL EXCISE, [1999] 112 ELT 765 (SC); v.UCO BANK v. C.I.T., [1999] 237 ITR 889 (SC); vi.COMMISSIONER OF SALES TAX, U.P. v. INDRA INDUSTRIES, [2001] 122 STC 100 (SC); vii.COMMISSIONER OF INCOME TAX v. KELVINATOR OF INDIA LTD., [2002] 256 ITR 1 (Delhi); viii.COLLECTOR OF CENTRAL EXCISE, VADODRA v. DHIREN CHEMICAL INDUSTRIES, [2002] 126 STC 122 (SC); ix.COLLECTOR OF CENTRAL EXCISE, VADODARA v. DHIREN CHEMICAL INDUSTRIES, [2002] 143 ELT 19 (SC); and x.COMMISSIONER OF CUSTOMS, CALCUTTA v. INDIAN OIL CORPORATION LTD., [2004] 165 ELT 257 (SC). 3.3. Mr.C.Natarajan, learned Senior Counsel also relied on the decision of the First Bench of this Court in an unreported judgment dated 19.9.2006 in W.A.No.1101 of 2006, etc (between Om Plastics and The Deputy Commercial Tax Officer), and also the decision of this Bench in INDIA CEMENTS LTD. v. ASST. COMMISSIONER (CT), [2007] 6 VST 140 whereunder the applicability of the circular and clarification issued under Section 28-A of the Act was dealt with and the ratio laid down by the Apex Court and other High Courts on the point, as followed in Mohan Breweries & Distilleries Ltd. v. Commercial Tax Officer (139 STC 477), was referred to. 3.4. According to Mr.C.Natarajan, learned Senior Counsel, as the circular and the clarification referred to above, were in existence during the relevant period, in view of the settled proposition of law that the circular is binding on the Revenue, the show cause notice raising a demand contrary to the terms of the circular and the clarification is ab initio void, as per the ratio laid down by the Apex Court in COMMISSIONER OF CUSTOMS, CALCUTTA v. INDIAN OIL CORPORATION LTD., [2004] 165 ELT 257; and PAPER PRODUCTS LTD. v. COMMISSIONER OF CENTRAL EXCISE, [1999] 112 ELT 765. https://hcservices.ecourts.gov.in/hcservices/ 4.1. Per contra, Mr.Haja Nazirudeen, learned Special Government Pleader, vehemently contends that even though the existence of the Circular D.Dis.Acts Cell II/75893/99, dated 24.12.1999, as amended by the clarification No.91/2000, D.Dis.Acts Cell II/52300/2000, dated 4.10.2000 is not disputed, the same is not valid, inasmuch as the same is contrary to the terms of the statute. 4.2.1. According to Mr.Haja Nazirudeen, learned Special Government Pleader, the impugned circular either could have been issued under Sections 8 or 28-A of the Act. If it is construed that the circular has been issued under Section 8 of the Act read with Entry 16 of Part-B of Third Schedule, the Circular is contrary to the terms of the statute, as Entry 16 of Part-B of Third Schedule refers only to sale tax, but not purchase tax, as the same is applicable only to the commodities specified thereunder being "sold", but not purchased. Entry 16 of Part-B of Third Schedule reads as under: "16. Chillies, tamarind, corriander, turmeric and shikakai sold by any dealer whose total turnover in respect of these items does not exceed Rs.300 Crores in a year" (emphasis supplied) 4.2.2. Argued that there is no reference to "purchase" in Entry 16 of Part-B of Third Schedule. Therefore, what was intended to be exempted under Entry 16 of Part-B of Third Schedule is only 'sales tax', but not 'purchase tax', even though Section 8 of the Act provides that subject to such restrictions and conditions as may be prescribed, a dealer who deals in the goods specified in the Third Schedule shall not be liable to pay "any tax" under this Act, in respect of such goods. 4.3. Mr.Haja Nazirudeen, learned Special Government Pleader also contends that the circular relied upon by the dealers, viz., Circular D.Dis.Acts Cell II/75893/99, dated 24.12.1999, as amended by the clarification No.91/2000, D.Dis.Acts Cell II/52300/2000, dated 4.10.2000 could not have been issued under Section 28-A of the Act, as Section 28-A of the Act refers to only the clarifications relating to the rate of tax, but not with reference to the exemption of any tax. 5. We have given careful consideration to the submissions of both sides. 6. Before proceeding further, it is apt to refer Sections 2 (ooo), 2(q), 2(r) , 7-A, 8, 28-A of the Act and Entry 16 of Part-B of Third Schedule, which read as under: https://hcservices.ecourts.gov.in/hcservices/ "Section 2(ooo): “tax” means and includes a sales tax, purchase tax, resale tax or surcharge, as the case may be, payable under this Act; Section 2(q): "total turnover" means the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax; Section 2(r): "turnover" means the aggregate amount for which goods are bought or sold, or delivered or supplied or otherwise disposed of in any of the ways referred to in clause (n), by a dealer either directly or through another, on his own account or on account of others whether for cash or for deferred payment or other valuable consideration, provided that the proceeds of the sale by a person of agricultural or horticultural produce, other than tea and rubber (natural rubber latex and all varieties and grades of raw rubber), grown within the State by himself or on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, shall be excluded from his turnover; Explanation 1: "Agricultural or horticultural produce" shall not include such produce as has been subject to any physical, chemical or other process for being made fit for consumption, save mere cleaning, grading, sorting or drying. Explanation 1A: Any amount charged by a dealer by way of tax separately without including the same in the price of the goods bought or sold shall not be included in the turnover. Explanation 2: Subject to such conditions and restrictions, if any, as may be prescribed in this behalf— (i)[Omitted] (ii)the amount for which goods are sold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of, or before the delivery thereof; (iii)any cash or other discount on the price allowed in respect of any sale and any amount refunded in respect of articles returned by customers shall not be included in the turnover; and (iv)where for accommodating a particular customer, a