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2014 (3) TMI 444 - HC - VAT and Sales TaxExemption from export duty - Inter-State sales of Rectified and Denatured Spirit - Held that - The decision in Commissioner of Sales Tax UP. Versus M/s. Upper Doab-Sugar Mills Ltd. 2014 (2) TMI 1003 - ALLAHABAD HIGH COURT followed - United Provinces Sales of (Motor Spirit, Diesel Oil and Alcohol) Taxation Act, 1939 is a sales tax law within the meaning of Section 2(i) of Central Sales Tax Act, 1956 - The alcohol being taxable under the 1939 Act, payment of central sales tax on inter-State sale of alcohol not exempted as per provisions of Section 8 (2-A) of the 1956 Act even though there was general exemption under section 4 of the 1948 Act - The orders of the Tribunal in revisions set aside - Decided in favour of revenue. Inclusion of export pass fee in taxable turnover Exemption of the sale of old boiler Held that - Judgment in Commissioner of Income-Tax Versus Rampur Distillery And Chemicals Co. Limited 2004 (11) TMI 88 - ALLAHABAD High Court followed - export pass fee is the liability of the exporter to pay while getting the export permit - there was no liability of payment of export pass fee on the dealer under the Excise Act - No question of treating the export pass fee as part of the turnover for exemption of the sale of old boiler the decision in Rainbow Steels Ltd. and Another Versus The Commissioner of Sales Tax, Uttar Pradesh, Lucknow and Another 1981 (1) TMI 213 - SUPREME COURT OF INDIA relied upon thus there is no need of interference to the observation of tribunal - Decided against revenue.
Issues:
1. Exemption of inter-State sales of Rectified Spirit and Denatured Spirit along with export duty 2. Taxability of export pass fee in the taxable turnover of the Assessee 3. Exemption of the sale of old boiler based on a specific legal precedent Analysis: Issue 1: Exemption of inter-State sales of Rectified Spirit and Denatured Spirit along with export duty The court referred to a Division Bench judgment that clarified the applicability of the United Provinces Sales of (Motor Spirit, Diesel Oil, and Alcohol) Taxation Act, 1939 as a sales tax law under the Central Sales Tax Act, 1956. The court held that the payment of central sales tax on inter-State sale of alcohol was not exempted despite a general exemption under a different act. The Tribunal's decision to exempt the sales was set aside, ruling in favor of the Revenue. Issue 2: Taxability of export pass fee in the taxable turnover The court relied on a Division Bench judgment and a Single Judge judgment to determine the liability for the export pass fee. It was established that the export pass fee paid by the Ex. U.P. purchaser should not be included in the turnover of the Assessee. The court emphasized that the fee is the responsibility of the purchaser, not the distillery, and should not be considered part of the seller's turnover under the Central Sales Tax Act. Consequently, Question No. 2 was answered in favor of the Assessee and against the Revenue. Issue 3: Exemption of the sale of old boiler The court noted a concurrent finding of fact regarding the exemption of the sale of an old boiler, based on a specific legal precedent. The court found no grounds for interference and decided to answer the question against the revenue. As a result, the Revision was partly allowed, setting aside the Tribunal's judgment on specific aspects and remanding the matter for further proceedings in line with the court's findings and the law. In conclusion, the judgment addressed the issues related to the exemption of inter-State sales, the taxability of export pass fees, and the exemption of a specific sale based on legal precedents, providing detailed analysis and rulings on each matter.
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