9911796707
TMI Blog2013 (5) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant are chargeable to purchase tax, there is no violation of Form 19 of the Act or the Gujarat Sales Tax Rules, 1970. The appellant was exempted from payment of purchase tax for a period of six years. The assessment year 1995-96 and 1996-97 fall within the exempted period, therefore, the appellant is not liable to pay any purchase tax. The appeal is allowed. The orders passed by the Tribunal, Commissioner of Sales Tax and the Assessing Officer are set aside. - TAX APPEAL No. 536 of 2010 with TAX APPEAL No. 537 of 2010 - - - Dated:- 29-6-2012 - MR. V. M. SAHAI AND MR. N.V. ANJARIA JJ. Appearance: MR TANVISH BHATT for M/S WADIA GHANDY CO for Appellant(s):1, MR ROHAN YAGNIK, AGP for Opponent(s):1, ORAL JUDGMENT (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 49(2) of the Gujarat Sales Tax Act, 1969 (for short `the Act') and the sprinkler sets are exempted from payment of sales tax in terms of Entry No.41 of the notification. The Sales Tax Officer as well as the authorities below have held that the petitioner was manufacturing sprinkler sets, which were exempted under Entry No.41, therefore, the appellant is liable to pay purchase tax under section 13(B) of the Act as the appellant was manufacturing exempted goods. The Tribunal has further recorded a finding that the raw materials were purchased for manufacture of sprinklers by the appellant against Forms Nos.19. The conditions mentioned in the form was that the goods so manufactured should be taxable goods. Since the goods manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e did not find that there is any violation of Form 34. 8. Entry No. 41 with regard to exemption granted on sales of sprinkler sets under section 49(2) of the Act is extracted below:- 41. Sales of Sprinkler sets Whole of tax IIA - 195 Nil 9. The authorities below have decided against the appellant only in view of the fact that the appellant had manufactured exempted goods and had utilized Form 19, which could be availed only for purchase of raw material for manufacture of taxable textile goods. Exemption granted to a new industry which manufactures sprinkler sets for irrigation purpose, etc., is to give impetus to the industry and for that purpose notification under section 49(2) was issued and by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, committed by the assessee. 11. In our considered opinion, the object of the exemption notification is to forego the purchase tax to give certain benefits to the manufacturer so that the new industry may survive. Since the sprinklers are chargeable to purchase tax, there is no violation of Form 19 of the Act or the Gujarat Sales Tax Rules, 1970. The appellant was exempted from payment of purchase tax for a period of six years. The assessment year 1995-96 and 1996-97 fall within the exempted period, therefore, the appellant is not liable to pay any purchase tax. For the reasons mentioned aforesaid, we uphold the orders of the authorities below. We answer the first question in the negative in favour of the assessee and again ..... X X X X Extracts X X X X X X X X Extracts X X X X
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