2007 (2) TMI 622 - HC - VAT and Sales Tax

Summary

Issues involved: Exemption on manufactured goods under the Central Sales Tax Act, 1956.

Analysis:
The judgment pertains to five revisions under section 11 of the U.P. Trade Tax Act, 1948, challenging the Tribunal's order related to the assessment years 1992-93 to 1996-97 under the Central Sales Tax Act, 1956. The key question in all the revisions revolves around the exemption on manufactured goods under the Central Act. The applicant, an institution certified by U.P. Khadi and Village Industries Board engaged in shoe manufacturing, claimed exemption based on a notification dated January 31, 1985, issued under section 4(b) of the U.P. Trade Tax Act. The assessing authority rejected the exemption claim, a decision upheld by the Tribunal, which ruled that the exemption was applicable only when goods were certified by the U.P. Khadi and Village Industries Board.

A similar issue was considered by the court in a previous case, where it was held that institutions certified by specific bodies are entitled to exemption under section 8(2A) of the Central Act. The court emphasized that circulars granting such exemptions are binding on revenue authorities unless withdrawn, and authorities cannot take a different stance contrary to the circulars. The court found that the present revisions are in line with the earlier decision, and therefore, the applicant, being certified by the U.P. Khadi and Village Industries Board, is entitled to exemption on the sale of shoes under the Central Act. Consequently, all the revisions were allowed, the Tribunal's order was set aside, and the Tribunal was directed to issue appropriate orders under section 11(8) of the Act.