9911796707
TMI Blog1990 (11) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... ers from soap stone-powder, rice bran oil and caustic soda. If the turnover of all these goods are taken into consideration, certainly his turnover would exceed Rs. 10 lakhs. After some time, the petitioner was notified under section 12-A of the Act by a notice dated 21st January, 1988. In the notice it was pointed out that the exemption notification was inapplicable to the petitioner because his total turnover exceeded Rs. 10 lakhs and the benefit of the notification for reduced rate of tax was attracted only to a dealer whose turnover in respect of all goods is less than Rs. 10 lakhs. Against this, the present writ petition is filed. 2.. Before considering the merits of the matter, the preliminary objection raised by the Government Plea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her there is an effective remedy available is for the court to consider at that stage and not 2 years and 10 months after the issuance of rule nisi. The very purpose of issuing notice regarding rule is to consider such matters, as this, as to whether the petitioner has alternative remedy, whether prima facie the petition has to be rejected for any other reason or whether the respondent on consideration of the matter would withdraw the notice issued to the petitioner. All preliminary issues are normally to be decided at this stage of preliminary hearing. 5.. The rate of tax in respect of the turnover is reduced under section 8-A as per the notification in question. The relevant portion of the notification states that: ".................. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liberally construed. As Mr. Indrakumar, learned counsel for the petitioner, pointed out that by virtue of the sale of a van or a vehicle, turnover exceeds Rs. 10 lakhs, the construction placed by the Revenue would deprive the dealer of the benefit of this notification. In other words, even though a dealer is an exclusive dealer in handmade washing soaps, by application of the interpretation read with the deeming provision of the Act, his turnover will exceed Rs. 10 lakhs and the benefit of the notification will be lost to the dealer. 7.. This apart, the concept of the total turnover referred in the notification will have to be necessarily understood with reference to the subject of the notification. The subject of the notification is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drakumar also cited M.P. Shoe House v. State of M.P. [1987] 67 STC 427 (MP). In the said case certain exemption was granted regarding sales of footwear made of rubber or plastic. However, the notification confined the exemption to sales by a dealer "who deals exclusively in footwear made of rubber and/or plastic". Therefore, as per the language of the notification exemption was not available to a dealer who was dealing in another goods also apart from footwear made of rubber or plastic. This restriction was challenged. A Bench of the Madhya Pradesh High Court allowed the writ petition and the word "exclusively" in the notification was struck down. It was observed by the High Court that once the Government, in its discretion, decides to gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
