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TMI Blog2008 (3) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed. The new industrial policy of the State Government for the years 1993-98 and the exemption notification is looked into, the only conclusion that can be drawn is, what is exempted under the notification issued by the State Government is tax leviable under section 5 of the Act on the goods manufactured and sold by an industrial unit. Therefore, the notification is in no way in variance or contrary to the industrial policy for the years 1993-98. - Civil Appeal No. 2225 of 2008 - - - Dated:- 28-3-2008 - ARIJIT PASAYAT DR. AND JAIN D.K. JJ. Sanjay R. Hegde, Advocate for the respondents. G. Sarangan, Senior Advocate, (Sanjay Kunur and N.N. Keshwani, Advocates with him) for the petitioner. ------------------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f arecanut purchased from member-growers and sale thereof to non-resident commission agents. The assessee was registered as a new industrial unit with the Directorate of Commerce and Industries and claimed to be governed by package of New Industrial Policy, 1996 and Package of Incentives and Concessions under 1996-2001 Scheme and eligibility certificate in that regard had been issued. Though initially the claim was accepted, subsequently, the revisional authority initiated proceedings under section 21(1) of the Act and revised the assessment orders and levied purchase tax under section 6 along with the turnover tax under section 6B of the Act and cess under section 6D of the Act on the ground that the appellant is eligible for sales tax e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious clauses in the Government order and the industrial policies accepted the stand of the Revenue. The stand taken before the High Court was reiterated by learned counsel for the appellant. With reference to one of the items covered by notification, i.e., coffee curing unit, it was stated that there was no question of any exemption being given at the time of purchase. It was therefore submitted that the purchasers have been given the additional benefits only. For the purpose of making the benefit meaningful purchase tax has to be included. It is to be read into it. The exemption is at the discretion of the Government and there cannot be any doubt about it. But it was the deliberate policy of the State Government to grant the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incentives and concessions under the said order shall be available only for the manufacturing units as defined for the purposes of Karnataka Sales Tax Act. However, certain specified categories of non-manufacturing units as detailed in appendix IV shall be eligible for the incentives and concessions as per the said order'." As rightly submitted by learned counsel for the respondents there is no change so far as the requirement in the notification dated November 15, 1996 relating to prescription that the goods manufactured and sold by new industrial units. Clause 5 of the 1996 Industrial Policy reads as follows: "Clause 5. Sales tax concession for new units. Industrial investments in the tiny/SSI/medium and large scale sectors would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent aspects of the same transaction. Whether sale or purchase, it will have same ingredients, both in common law and also under Sale of Goods Act. As stated by this court in Devi Dass Gopal Krishnan v. State of Punjab AIR 1967 SC 1895 See [1967] 20 STC 430 (SC)., the transaction, which the sales tax laws are concerned with, is a transfer of property in goods for price, inter vivos, both in the case of sale as well as purchase. In the Government order, what is provided to the new industrial units, is an option to claim sales tax exemption or deferment of sales tax both under the Act and the CST Act. In the field of taxation, it is recognised that the power to classify the objects or persons to be taxed or exempted from levy is with the Legis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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