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2007 (11) TMI 554 - HC - VAT and Sales TaxWhether the Appellate Tribunal correct in law in not holding that the revision petitioner is entitled for exemption from purchase tax under section 5A of the KGST Act for the turnover on the soft wood consumed for the manufacture of block board considering S.R.O. No. 403 of 99 as also clarificatory letters dated June 8, 2002 and June 29, 2002 from the Government? Held that - Taking into consideration the pathetic situation of the assessee and persons similarly placed, the State Government has issued a notification S.R.O. No. 593 of 2004 dated June 7, 2004 which has come into effect from January 1, 2000 granting exemption on the purchase turnover of soft wood, if the same is used in the manufacture of block board and block board frames. The State Government has also issued yet another notification S.R.O. No. 689 of 2007 dated July 6, 2007 which has been given retrospective effect from April 1, 1994 to December 31, 1999. In view of these notifications, the State Government has clarified that the manufacturers of block board and block board frames who purchases and consumes soft wood are eligible and entitled for exemption under the notifications S.R.O. No. 403 of 1994, S. R.O. No. 593 of 2004 and S.R.O. No. 689 of 2007. In view of the notifications so issued by the State Government it is now difficult to sustain the orders passed by the Tribunal. Accordingly the sales tax revision is allowed. The matter is now remanded back to the assessing authority to redo the assessment in accordance with law and in the light of the notifications S.R.O. No. 403 of 1994, S.R.O. No. 593 of 2004 and S.R.O. No. 689 of 2007.
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