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TMI Blog1978 (1) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... lver from other persons in the course of his business and consumes them in the manufacture of bullion for sale within the State, he is liable to pay purchase tax under section 6 of the Karnataka Sales Tax Act, 1957 (hereinafter called the "Act") on the purchase turnover of articles of gold and silver. On the sales turnover of bullion manufactured by him he has to pay sales tax under section 5(3)(a) read with item 74 of the Second Schedule of the Act. Accordingly, the Assistant Commercial Tax Officer passed orders of assessment in respect of the relevant years. Aggrieved by the orders of assessment, the appellant preferred appeals before the Assistant Commissioner of Commercial Taxes. The Assistant Commissioner of Commercial Taxes allowed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. It reads as follows: "GOVERNMENT OF KARNATAKA Karnataka Government Secretariat, 'Vidhana Soudha', Bangalore. Notification IV.-No. FD 283 CSL 70 dated the 10th September, 1970. S.O. 2048.-In exercise of the powers conferred by section 8-A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby exempts with effect from the 1st day of October, 1970, the tax payable under section 6 of the said Act on the purchases of articles of gold and/or silver (whether set with precious stones or not) by a manufacturer of such articles subject to the condition that the said manufacturer proves to the satisfaction of the assessing authority that he has paid the tax payable either under sub-section (1) or cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression "articles of gold and silver" cannot include within its ambit bullion and specie, as the word "articles", referred to above, conveys the meaning that the goods in question are those which can be used either as jewellery or utensils. They are manufactured out of bullion. In the instant case, what is sold by the appellant is bullion and not articles of gold and silver. The second submission of Sri Srinivasan is that, since no articles of gold and silver had been manufactured by the appellant, the question of paying sales tax on their turnover did not arise and since the appellant had not therefore withheld any sales tax which he was liable to pay, it should be held that the tax payable under section 6 was exempt from payment under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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