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TMI Blog1991 (7) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as a transaction in the course of export, even though earlier the respondents-authority also were treating it to be so. After the decision the respondents started proceeding for levying tax under the relevant provision of the Acts. The dealers in order to salvage from the onerous liability likely to be fastened on them approached the Central Government through representation for redress. The representations were also by different associations of exporters. In consequence thereof the Central Government amended the relevant provision through Act No. 103 of 1976 amending section 5 of the Central Sales Tax Act, 1956 by adding subsection (3) retrospectively from 1st April, 1976. However, since large number of dealers were likely to be affe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus he did not deposit tax initially, as the petitioner felt no liability of purchase tax on such supply for the proposed export in view of the law as understood then. After passing the assessment order for 1974-75 on 25th October, 1978, the petitioner approached the respondent for granting remission of purchase tax and since this did not materialise, having no option he deposited the entire purchase tax as assessed. It is thereafter a demand has been raised by passing order under section 8(1) of the U.P. Sales Tax Act imposing interest on the said amount of purchase tax totalling Rs. 32,125.92 with effect from 1st June, 1975. Thereafter recovery certificate under section 8(8) of the U.P. Sales Tax Act was also issued for recovering the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidhwat dei pradeshiya tatha kendrea bikri kar ki rashi maf kar diye jai sath hi asse dei rashi byaj tatha asropith arthdandh yadi koi ho..................." It is true in the subject of the said letter as quoted above, this referred to exemption of sales tax on the footwears exported to other countries. The word used therein of granting exemption of sales tax is broadly used. However, the language used in the said circular is not confined to exemption from sales tax only, but clearly speaks of granting exemption to such dealers on the tax payable by them either in the U.P. or under the Central Sales Tax Act where footwears were sold to State Trading Corporation for its export. In fact we find the assessment order under the Central Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansaction in question. Admittedly in this case the purchase tax has been levied and in case we have to interpret in the limited sense that the said circular only confines to the exemption of the sales tax then it would mean that no one can get relief under the aforesaid circular in respect of transaction in question. Thus, it is not possible to accept the interpretation given by the respondent to the said circular. We are clearly of the opinion that the said circular will also include the exemption to dealer on such transaction on which purchase tax is leviable under section 3-D. However, the petitioners have already paid the purchase tax and has only challenged the assessment order passed under section 8(1) imposing interest and recove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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