9911796707
TMI Blog1968 (4) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... te Act as the assessee is a registered dealer, is also exempt in the hands of the assessee under the Central Sales Tax Act ?" 2.. The assessee, M/s. Kapoor Dori Niwar Co., Gwalior, is a registered dealer engaged in the manufacture and sale of niwar. In assessment proceedings of sales tax under the Central Sales Tax Act, 1956, (hereinafter referred to as the Act), for each of the periods, namely, from 1st April, 1959, to 31st August, 1959, from 1st September, 1959, to 18th August, 1960, and from 19th August, 1960, to 5th September, 1961, the assessee claimed that as sales of niwar were exempt from tax under the State Act, namely, the M.P. General Sales Tax Act, 1958, its turnover of inter-State sales of niwar could not be taxed in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his turnover." Sub-section (2) of section 8 deals with the tax payable by any dealer on the sale of goods in the course of inter-State trade or commerce not falling within sub-section(1). Then follows sub-section (2A), which is in the following terms: "(2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), if under the sales tax law of the appropriate State the sale or purchase, as the case may be, of any goods by a dealer is exempt from tax generally or is subject to tax generally at a rate which is lower than one per cent (whether called a tax or fee or by any other name), the tax payable under this Act on his turnover in so far as the turnover or any part thereof relates to the sale of such goods shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General Sales Tax Act, 1958, that the sales of niwar effected by the assessee, a registered dealer, were exempt from sales tax. The exemption granted to the sales of niwar by a registered dealer under the aforesaid notification was without any restriction or limitation so far as sales by a registered dealer were concerned. It was no doubt for a period of one year in the first instance and then extended up to 31st March, 1963. But the period during which this exemption from payment of tax operated cannot in any sense be regarded as any condition imposed in relation to the exemption. During the period of exemption, the sales of niwar by a registered dealer were exempted from tax "generally", that is to say, universally and without any limitat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by a class of dealers to whom exemption is granted and during the period for which exemption is granted. The notification dated the 1st April, 1959, does not prescribe any such conditions or circumstances with regard to grant of exemption on sales of niwar by registered dealers. It must be noted that subsection (2A) of section 8 of the Act does not speak of exemption under the State sales tax law of sale or purchase of any goods by all dealers. It says "if under the sales tax law of the appropriate State the sale or purchase, as the case may be, of any goods by a dealer is exempt from tax". The words "a dealer" used in sub-section (2A) mean a registered as well as an unregistered dealer. Therefore, there can be no room for the argument th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the exemption granted to the assessee under the local Act was applicable under the Central Sales Tax Act also. On the construction put by us on subsection (2A) of section 8 of the Act, after it was amended in 1958, it is not necessary to consider whether the decision of the Supreme Court in State of Mysore v. Lakshminarasimhiah Setty and Sons[1965] 16 S.T.C. 231. is applicable here, or its applicability is ruled out by the non obstante expression "notwithstanding anything contained in sub-section (1) or sub-section (2)" with which sub-section (2A) of section 8 of the Act begins. 7.. For these reasons, our answer to the question is in the affirmative. The Commissioner of Sales Tax, M.P., shall pay costs of this reference. Counsel's fee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
