9911796707
TMI Blog1974 (5) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that the turnover in respect of mirrors and toughened glasses manufactured by the petitioner at Allahabad shall be exempt from payment of sales tax for a period of three years with effect from February, 1969, claimed that the turnover of sales of toughened glasses and mirrors, manufactured by it, being generally exempt from tax under the U.P. Sales Tax Act, it was not liable to Central sales tax either, as provided in section 8(2A) of the Central Sales Tax Act. It accordingly moved an application under section 22 of the U.P. Sales Tax Act read along with the Central Sales Tax Act for rectification of the assessment order dated 26th June, 1973. The Sales Tax Officer, Allahabad, by his order dated 13th December, 1973, rejected the application for rectification on the ground that the turnover of sales of toughened glasses and mirrors was not generally exempt from payment of sales tax under the U.P. Sales Tax Act. As such, the petitioner could not derive any advantage from the provisions of section 8(2A) of the Central Sales Tax Act and its turnover had been rightly assessed under that Act. Being aggrieved by the two orders mentioned above, the petitioner has approached this court u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate law the turnover in respect of sale of particular goods in the hands of a particular dealer may in no circumstance be liable to sales tax and, in that sense, the turnover of such goods in his hands may be generally exempt from payment of tax, yet for the purposes of section 8(2A), sale of such goods would not be considered to be exempt from tax generally if under the State law, sale of such goods is exempt from tax only in specified circumstances or under specified conditions or in relation to which the tax is levied at specified stages or otherwise than with reference to the turnover of the goods. We will, therefore, have to see whether under the U.P. Sales Tax Act, the petitioner's turnover of sale of mirrors and toughened glasses manufactured by it is in no circumstance liable to be taxed and, if it be so, whether mirrors and toughened glasses manufactured by the petitioner are goods belonging to the classes of goods specified in the explanation to section 8(2A) regarding which a fiction, that notwithstanding the fact that the turnover of sale of such goods has, in no circumstance, been made taxable in the hands of the dealer, it would still not be considered to be exempt f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attract even the Central Sales Tax Act unless they belong to the class of goods specified in explanation to section 8(2A) of the Central Sales Tax Act. The explanation to section 8(2A) takes out from the ambit of the expression "sale or purchase of any goods by a dealer is exempt from tax generally", sale of only such goods which are of the nature or belong to the class described therein, i.e., goods in respect of which sales tax under the State law is payable when they are sold under specified circumstances or under specified conditions or in relation to which tax is levied at specified stages or otherwise with reference to their turnover. The learned standing counsel appearing for the State did not urge that in respect of mirrors, lanterns and toughened glasses manufactured by the assessee, tax was leviable at specified stages or otherwise with reference to their turnover. He urged that, according to the notification issued under section 4-A, sale of mirrors and toughened glasses by the petitioner is exempt on condition that such goods were manufactured by it in its factory at Allahabad. It was, therefore, a conditional exemption and, as such, it could not be said that the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of exemption; so that if those circumstances do not exist or those conditions are not performed, then the sales of goods cannot be exempt from tax even if they are effected by the class of dealers to whom exemption is granted during the period of exemption The learned standing counsel relied upon certain observations of the Punjab and Haryana High Court in the case of State v. Indian Aluminium Cable Ltd., Faridabad[1974] 33 S.T.C. 152. This case, in our opinion, does not support the submission that the period for which exemption is granted becomes either the condition for or the circumstance in which such exemption has been granted. In this case, the learned judges approved the decision of the Madhya Pradesh High Court in the case of Commissioner of Sales Tax, Madhya Pradesh v. Kapoor Dori Niwar and Co., Gwalior[1968] 22 S.T.C. 152., and held that the notification granting exemption in that case was materially different from the notification issued in the Madhya Pradesh case. They held that the exemption granted in that case could not be said to have been granted generally because there could be undertakings doing the same job which could be made liable to pay sales tax on similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this case it is obvious that so far as mirrors and toughened glasses manufactured by the petitioner in U.P. are concerned, their sales as per the two notifications issued under sections 3-A and 4-A of the U.P. Sales Tax Act are not liable to sales tax in the hands of any dealer in U.P. The only question that remains to be considered is whether for purposes of section 8(2A), the goods belonging to the classes mentioned therein could be sub-classified into goods manufactured by different manufacturers. In our opinion, the U.P. Sales Tax Act does contemplate a sub-division of goods into one manufactured subsequent to or prior to a particular date, or into goods manufactured in factories or workshops established prior to and subsequent to a particular date. The provision in section 8(2A) when It speaks of exemption from tax generally, on the sale or purchase of goods, obviously refers to such class of goods which have been selected for concessional treatment. It is not disputed that with a view to increase the production of toughened glass and mirror, it was open to the State Government to classify for the purposes of levy and collection of tax under the U.P. Sales Tax Act mirror an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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