9911796707
TMI Blog2005 (10) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... strial unit eligible for sales tax exemption as per the notification issued in this behalf. In the year 1994-95 petitioner purchased raw materials worth Rs. 3,21,145 from M/s. Industrial Chemical Corporation, Eda, Cochin as against form 18 declarations claiming concessional rate of tax under section 5(3) of the Kerala General Sales Tax Act, 1963. The Sales Tax Officer, the respondent herein, howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tax Act, 1963. By virtue of the exemption granted to the petitioner as a small-scale industrial unit and by virtue of the notification issued under section 10 there is no liability fastened on him to pay the tax. According to him, under section 5(3) of the KGST Act, when he purchased raw materials for the manufacture of end-products he is liable to pay duty on the materials only at concessional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the dealer whose end-products are taxable under the Act at a rate more than the concessional rate so provided. As per the proviso to the said section, the main provision will not apply where no tax is payable by the industrial unit on such finished products either under this Act or under the Central Sales Tax Act, 1956 when such finished products are exported out of the territory of India. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt sales would indicate that the proviso will apply to exclude section 5(3) only in the case of non-applicability of the Act, as in the case of liability under the Central Sales Tax Act or liability for export sale. The limited exemption given by a notification from payment of sales tax in respect of the turnover cannot be construed to be that there is "no liability" to tax under the Act. In Green ..... X X X X Extracts X X X X X X X X Extracts X X X X
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