2009 (4) TMI 887 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Upholding the revision of assessment regarding the exemption granted for sales of mixies.
2. Claim for exemption in the sale of meenu mix to a union-run canteen and heavy vehicles factory under a government order.
3. Justification of the Appellate Tribunal's order negating the exemption claim.
4. Compliance with the terms of the Government order for entitlement to exemption benefits.

Analysis:

1. The primary issue in this case pertains to the correctness of the Sales Tax Appellate Tribunal's order regarding the revision of assessment on the exemption originally granted for sales of mixies. The Revenue challenged the Tribunal's decision, leading to a review by the High Court.

2. The assessee's claim for exemption in the sale of meenu mix to a union-run canteen and heavy vehicles factory under a specific government order was rejected by the Tribunal. The Tribunal based its decision on the grounds that the ultimate beneficiaries were members of a separate women's welfare association, not directly linked to the factory.

3. The Appellate Tribunal's order negating the claim for exemption was questioned on the basis of violating the principles of natural justice and being arbitrary. The Tribunal's decision was deemed unjustified as it failed to consider the compliance of the assessee with the terms of the relevant Government order.

4. Upon reviewing the facts and the Government order in question, the High Court found that the assessee had complied with the terms stipulated in the order. The Court emphasized that the sales were made to the canteen stores as per the order's requirements, entitling the assessee to the benefit of the exemption. The Court highlighted that the Tribunal's reasoning did not align with the purpose of the Government order and set aside the Tribunal's decision, ruling in favor of the assessee.

In conclusion, the High Court allowed the appeal, holding that the assessee was entitled to the benefit of the Government order, and set aside the Tribunal's decision. No costs were awarded in this matter.