9911796707
TMI Blog1986 (2) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... as small-scale industry under the Industries Department of the State Government. The State Government issued a notification dated 9th September, 1969, exempting newly established small-scale industries from payment of sales tax for a period of five years from the date of their production. This benefit was extended again up to 31st March, 1979, by another notification dated 14th March, 1974. The Government has further granted exemption from the levy of both general sales tax and special sales tax on the finished products by the newly set up industries at the first stage of sale. The case of the petitioner further is that in view of the provisions of section 8(2A) of the Central Sales Tax Act it was exempt from paying the Central sales tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han four per cent (whether called a tax or fee or by any other name) shall be nil, or, as the case may be, shall be calculated at the lower rate. Explanation-For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods." 4.. According to the petitioner, it is entitled to the exemption of Central sales tax for the specified period in view of the exemption admittedly ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch circumstances or conditions the non-existence or non-performance of which precludes the grant of exemption; so that if those circumstances do not exist or those conditions are not performed then the sales of goods cannot be exempted from tax even if they are effected by a class of dealers to whom exemption is granted and during the period for which exemption is granted. In other words, the generality of section 8(2A) is destroyed by the explanation only if the exemption is dependent upon non-existence or non-performance of any circumstance. In this decision, the sale of "niwar" was exempted for a specified period from the State sales tax. The fixation of the period of exemption was held to be outside the ambit of the specified conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of goods cannot be exempted from tax. Where the exemption from taxation is conferred by conditions or in certain circumstances, there is no exemption from tax generally within the meaning of section 8(2A) of the Central Act. The goods should be totally exempt from tax under the State Act before similar exemption from the levy of Central sales tax can become available." Applying the ratio as enunciated above to the case of the petitioner it is clear that there is no condition imposed upon the petitioner the non-performance or non-existence of which would render the exemption inapplicable, because the condition here was only related to the fixation of a period of exemption, the sale being entirely without any condition. 7.. In the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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