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TMI Blog2002 (2) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... ial units including public sector undertakings for use in the manufacture or processing of goods by them or on job work basis within the State. The reduction in rate of tax is 5 per cent. There is no dispute with regard to rate of tax applicable on the sales which are certified by the purchasers in terms of annexure I to the notification. 2.. The grievance of the petitioner is that though the petitioner is not liable to pay additional sales tax under section 5D of the Kerala General Sales Tax Act, 1963, the petitioner will be called upon to pay the same in view of the clarification, exhibit P2, and therefore the petitioner has challenged the said clarification issued by the Commissioner of Commercial Taxes under section 59A of the KGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule in such a way that the tax leviable under section 5 and section 5-A and that leviable under this section together exceed four per cent: Provided further that the levy of additional tax payable under this section shall only be for the period up to March 31, 2002." It is obvious from the above that it is an additional levy in respect of tax payable under various provisions of sections 5 and 5A of the KGST Act. While section 5 provides for payment of tax on sale or purchase of goods and on certain other transactions at the rates prescribed in the corresponding Schedules and at the points of levy provided therein, similar levy is provided under section 5-A on purchases under circumstances in which no tax is payable by the seller. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --------------------------------------------- Sl. Description of Description of goods Reduced rate of tax No. person/organisation (per cent) ------------------------------------------------------------------------------------------- 3. Industrial units including (i) Machinery 3 public sector undertakings (ii) Goods other than 5 for use in the manufacture petroleum products or processing of goods by coming under entry them or on job-work basis 108 of the First within the State. Schedule to the Act. (iii) Furnace oil for use 15 as fuel (iv) Goods mentioned in the Table to this notification 3." ------------------------------------------------------------------------------------------- It is obvious from the above notification t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Supreme Court in Deputy Commissioner of Sales Tax v. Aysha Hosiery Factory (P.) Ltd. [1992] 85 STC 106. That was a case under section 8(5) of the Central Sales Tax Act, 1956 wherein the Supreme Court held that the rate of tax in respect of turnover not covered by declarations under section 8(3) will be increased by additional tax payable under the Kerala Additional Sales Tax Act, 1978. The decision referred to will not apply to the facts of the petitioner's case because in that case the court was concerned about the meaning of the term "local rate of tax" under section 8(2)(b) of the CST Act and in this case, the additional sales tax is on the tax payable under the local Act and rate of tax has no significance. If the tax is payab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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