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TMI Blog2007 (2) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... posite party (hereinafter referred to as the dealer ) is an institution certified by the U.P. Khadi and Village Industries Board and engaged in the manufacturing of shoes. In exercise of power under section 4(b) of the U.P. Trade Tax Act goods manufactured by the institution certified by the U.P. Khadi and Village Industries Board is not liable to tax under the Notification No. ST-II-7037/ X-7(23)/83-U. P. Act XV/48-Order-85, dated January 31, 1985. The exemption has not been allowed by the assessing authority. The Tribunal, however, allowed the exemption on the turnover of inter-State sales in view of section 8(2A) of the Central Act. Heard learned counsel for the parties. The learned Standing Counsel submitted that the exemption un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated June 30, 1979 is applicable in which there was no condition for the exemption. He further submitted that under the Notification No. ST-II-7037/X-7(23)/83-U.P. Act XV/48-Order-85, dated January 31, 1985 the conditions are relevant for purchases and not for sale. According to him, there was no condition granting exemption on sale. He submitted that for the first time two conditions were imposed for the exemption on sale vide Notification No. ST-II-709/11-9(53)/91-U.P. Act XV-48-Order-97, dated February 27, 1997. He submitted that vide circular dated July 23, 1977 Government has taken a view that the exemption granted on the sale to the institutions certified by the U.P. Khadi and Village Industries Board is a general exemption and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise of the powers under clause (b) of section 4 of the Uttar Pradesh Sales Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), and in supersession of all previous notifications issued under the aforesaid clause, the Governor is pleased to exempt, with effect from February 1, 1985, the sale or purchase of the goods mentioned in column 2 of the Schedule hereunder by the persons or the class of persons mentioned therein, from tax under the said Act of 1948, subject to the conditions, if any, specified in column 3 thereof: SCHEDULE SI. No. Description of goods/persons/class of persons Conditions, if any. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods. Perusal of the notifications referred hereinabove shows that the exemption is to the institutions certified by All India Khadi and Village Industries Commission, Mumbai or by U.P. Khadi and Village Industries Board, Kanpur and not with reference to the goods or a class or category of goods. Under the aforesaid notifications goods are not generally exempted from tax under the U.P. Trade Tax Act. The exemption is not general but conditional one, namely, available only to the institutions certified by All India Khadi and Village Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certified by All India Khadi and Village Industries Commission, Mumbai or by U.P. Khadi and Village Industries Board, Kanpur, cannot be said to be general exemption to the goods under the U.P. Trade Tax Act. Industries [1998] 111 STC 254 (SC); [1997] 7 SCC 47. In the case of Ranadey Micronutrients v. Collector of Central Excise [1996] 10 SCC 387, this court held that the whole objective of such circulars is to adopt a uniform practice and to inform the trade as to how a particular product will be treated for the purposes of excise duty. The court also held that it does not lie in the mouth of the Revenue to repudiate a circular issued by the Board on the basis that it is inconsistent with a statutory provision. Consistency and discipline a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 8(2A) of the Central Act and the goods manufactured by such institutions have been treated exempted from tax under the Central Act. The apex court held that the circulars are binding upon the Revenue authorities though they may be contrary to the statute and it is not open to the Revenue authorities to take a different stand. Thus, so long as the circular stands and is not withdrawn Revenue authorities cannot take a different stand contrary to the circular. It is not the case of the Revenue that the circulars have been withdrawn. In this view of the matter, revisions filed by the Revenue have no force and the order of the Tribunal granting exemption of the goods manufactured by the institutions under section 8(2A) of the Central Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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