TMI Blog2005 (7) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... icut, who purchased the said gunny bags for packing cattle feeds produced by them. The Additional Income-tax Officer found that since the respondent/assessee has sold gunny bags against form 18 declarations to a dealer in cattle feed, which was exempted from payment of tax for the period from April 1, 1989 to March 31, 1991 by virtue of the notification granting exemption, he is not entitled to the concessional rate of tax. It was held that under section 5(3) of the Kerala General Sales Tax Act, 1963, the respondent/assessee is not entitled to the benefit of concessional rate of tax based on the form 18 declaration issued by the buyer. Hence the return was rejected and assessment was completed disallowing the claim of concessional rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther that the provisions of this sub-section shall not apply to any sale unless the dealer selling the goods furnishes to the assessing authority in the prescribed manner a declaration duly filled in and signed by the dealer to whom the goods are sold containing the prescribed particulars in the prescribed form." (emphasis supplied) 4.. Admittedly, the assessee furnished form 18 declarations duly filled in and signed by the dealer to whom the goods are sold. As such, the second proviso is not attracted. As far as the first proviso is concerned, the provisions contained in this sub-section will not apply where the sale of such finished products is not liable to tax (emphasis supplied) either under this Act or under the Central Sales Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . State of Bihar [2004] 137 STC 389 at page 397 held thus: "Crucial question, therefore, is whether the appellant had any 'liability' under the Act. The answer to this lies in section 3 of the Act which is extracted above and is the charging section. ..Subsection (3) of section 7 stipulates that State Government may, by notification and subject to such conditions or restrictions as it may impose, exempt from sales tax or purchase tax certain sales or purchases as the case may be. The question of exemption arises only when there is a liability. Exigibility to tax is not the same as liability to pay tax. The former depends on charge created by the statute and the latter on computation in accordance with the provisions of the statute and R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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