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TMI Blog2008 (8) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of sales exemption under section 5(3) and directing the assessing officer to grant exemption based on form 18A produced by petitioners, if the same is supported by documents prescribed under section 5(3) of the CST Act - - - - - Dated:- 26-8-2008 - RAMACHANDRAN NAIR C.N. AND MOHANAN V.K. , JJ. ORDER:- The order of the court was made by C.N. RAMACHANDRAN NAIR During the year 2001-02, the petitioners manufactured jute products and sold the same to an exporter who exported the same to foreign buyers. However, the petitioner did not take any registration under the Kerala General Sales Tax Act, 1963 (hereinafter called the KGST Act ). In the course of investigation, the Sales Tax Department noticed the purchase and export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the reason that petitioners were not registered under the KGST Act. The assessment orders so issued were confirmed in first appeal and re-confirmed by the Tribunal in second appeal against which these revisions are filed. We have heard Sri. V.P. Sukumar, appearing for the petitioners and the Government Pleader appearing for the respondents. Counsel for the petitioners relied on the decision of the Supreme Court in Commissioner of Sales Tax v. Leather Facts Co. [1987] 66 STC 91 and contended that sales tax exemption under section 5(3) of the CST Act cannot be denied for want of registration under the KGST Act. Government Pleader on the other hand contended that, besides want of registration, form 18A obtained is defective for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on business smoothly. However, if a dealer carries business without registration, he is liable to pay sales tax like a registered dealer and his only disability is from collecting tax. In fact, liability for payment of tax under the Act is the same for registered and unregistered dealers. There is no provision in the KGST Act or Rules authorising dis-allowance of sales tax exemption on any part of the turnover of a dealer on the ground that he carried on business without registration under the Act. In fact, provision for determination of total turnover under rule 8 and rule 9 providing for determination of taxable turnover are the same for all dealers under the Act whether registered or otherwise. Rule 9(h) of the KGST Rules provides th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption is provided based on conditions, exemption will certainly depend on the claimant satisfying the conditions. Therefore, if the statutory form furnished which is the requirement for granting exemption is defective materially, exemption has to be necessarily disallowed. The question now to be considered is whether form 18A furnished by the petitioners are defective in material aspects warranting rejection of the claim. We feel the validity of the form has to be tested with the ingredients of exemption contained under section 5(3) of the CST Act. The first condition for grant of export exemption under section 5(3) is the availability of advance foreign order for export to the purchaser-exporter at the time of purchase. The next conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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