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TMI Blog1997 (3) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... apply to component parts which are visually identifiable within the meaning of the Explanation thereunder? Is not rubber sheets are visually identifiable component within the meaning of the Explanation? 3.. Whether, on the facts and circumstances, the finding of the Tribunal that Notification S.R.O. No. 643/81 has become inoperative and stood repealed by implication by the introduction of sub-section (3A) of section 5 correct in the light of established principles of interpretation? Is it not cardinal principle governing interpretation of statutory provisions? When there is ambiguity or conflict, should not an interpretation favourable to the taxpayer be taken? 4.. Is not sub-section (3A), a general provisions applicable to industries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch benefit was denied. The assessing authority took the view that on the introduction of sub-section (3A) of section 5 with effect from October 14, 1982 it should be taken that thereafter S.R.O. No. 643/81 would not govern the field and assessee is liable to produce declarations in form No. 18 as provided under sub-section (3A) of section 5. Since the declaration produced by the assessee was in the form prescribed under S.R.O. No. 643/81, the assessee is liable to assess tax at 12 per cent. The above finding of the assessing authority was affirmed by the first appellate authority. The Tribunal also took the view that even though S.R.O. No. 643/81 has not been specifically cancelled by the Government, the same has been made inoperative by vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3A) dealt with sale of goods for use as component part as defined in Explanation to sub-section (3) of any other goods mentioned in the First Schedule. But sub-section (7) dealt with sale of industrial raw materials. Sub-section (7) reads as follows: (7) Notwithstanding anything contained in sub-section (1) or sub-section (2), the tax payable by a dealer in respect of any sale of industrial raw materials or packing materials, which is liable to tax at a rate higher than four per cent, when sold to industrial units for use in the production of finished products inside the State for sale, or for packing of such finished products inside the State for sale, as the case may be, shall be at the rate of only four per cent on the taxable turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucing rate of tax applicable generally to sale of industrial raw materials or packing materials which are liable to tax at a rate higher than 4 per cent, when sold to industrial units for use in the production of finished products inside the State for sale, etc. But the provisions contained under S.R.O. No. 643/81 related to such benefit of reduced rate of tax in respect of certain specified items like purchase of paper used for the manufacture of note books, plastics used for the manufacture of plastic goods and rubber sheets used for the manufacture of chappals. We are not persuaded to hold that by introduction of sub-section (7) in section 5 the provisions contained under S.R.O. No. 643/81 would become inoperative. As mentioned earlier, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en if there had been violation, it was only technical in nature. The contents of the declaration as contemplated in form 18 provided under sub-section (7) and the declaration provided under S.R.O. No. 643/81 are more or less of same nature. For this reason also we are of the view that the authorities below have wrongly declined the claim put forward by the assessee for being assessed at the rate of 4 per cent in respect of the rubber sheets purchased from it for the manufacture of chappals. We therefore set aside the orders of two appellate authorities and direct the assessing authority to modify the assessment order in the light of the findings in this judgment. The revision stands allowed as above. Petition allowed. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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