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TMI Blog1992 (3) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... mbay Mint for pure plates of gold and on return, sold the "bullion" in the course of interState trade and commerce and paid purchase tax at the rate of 1 per cent. At the time of original assessment as no tax on the purchase of ornaments was levied, a notice under section 12 was issued to the assessee for escapement of purchase tax. The assessing authority levied purchase tax under section 5A on ornaments at the rate of 5 per cent as manufacture of pure gold (bullion) was not made within the State of Rajasthan. The assessing authority also imposed interest payable under section 11B of the Act, vide assessment order dated June 24, 1983. The assessee moved an appeal before the Deputy Commissioner (Appeals), Commercial Taxes, Bikaner, and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revision No. 73 of 1989, S.B. Sales Tax Revision No. 75 of 1989 and S.B. Sales Tax Revision No. 76 of 1989 raising following questions of law, challenging that the department is entitled to get tax at the rate of 5 per cent with interest: 1.. Whether, in the facts and circumstances of the case, the Tribunal was justified in reducing the rate of tax on purchases of ornaments from 5 per cent to 1 per cent? 2.. Whether, in the facts and circumstances of the case, the Tribunal was justified in holding that the assessee is entitled to benefit under section 5C of the Rajasthan Sales Tax Act? 3.. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that interest under section 11B cannot be charged when esca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghout with the assessee and relied on Assistant Commercial Taxes Officer v. Shankarlal Ghanshyamdas [1987] 67 STC 208 (Raj). The Tribunal has further held that as the process of refining was not available in the State of Rajasthan, the purchase tax cannot be levied at the rate of 5 per cent which is applicable to gold ornaments but leviable at the rate of 1 per cent under section 5A read with section 5C. The department has not been able to establish that no process has been done in Rajasthan, therefore, the argument that the purchase tax should be leviable at the rate of 5 per cent is not tenable. In view of the fact that the Tribunal has not given specific finding, therefore, in the interest of justice, I deem it proper to remand the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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