9911796707
TMI Blog2009 (12) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellate authority and direct the assessing officer to revise the assessment by cancelling the demand of differential tax under section 5(3)(ii) of the Act for the raw materials or packing materials purchased at concessional rate which are used in the manufacture or packing of goods for stock transfer. The question to be considered is whether purchase from SSI unit by availing of concessional rate will be sufficient compliance of payment in terms of column 8 of the Fifth Schedule. Since none of the authorities have considered the scope of exemption claimed by the assessee with reference to documents, we set aside the orders of the Tribunal and that of the first appellate authority on this issue and remand the matter to the assessing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of concessional rate is stock transferred outside the State, still the differential tax on raw material or packing material cannot be demanded from the manufacturing unit which availed of the concessional rate under section 5(3)(i) of he Act. The lower authorities, however, rejected the claim probably because the main clause talks about sale of the finished products as a condition for eligibility for concessional rate on raw material or packing material. We have heard counsel appearing for the assessee and the Government Pleader appearing for the respondent. The relevant provision after the amendment with effect from April 1, 2000 is extracted hereunder for easy reference: 5(3)(i) Notwithstanding anything contained in sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is paid either under the local Act or under the CST Act for availing of concessional rate on raw material or packing material used for manufacture or packing of such goods. However, the said proviso was deleted and the purpose of deletion as conveyed by the Minister while presenting the Budget on March 14, 2003 is as follows: 202. In order to promote manufacturing activity within the State, the concessional rate of three per cent under section 5(3) of the KGST Act will be made applicable to all purchases of raw materials used for manufacture of goods within the State irrespective of whether the product is liable to tax or not. Additional revenue of Rs. 2 crores is expected by preventing trade diversion. It is obvious from the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to concessional rate. We, therefore, allow the revisions by reversing the orders of the Tribunal and that of the first appellate authority and direct the assessing officer to revise the assessment by cancelling the demand of differential tax under section 5(3)(ii) of the Act for the raw materials or packing materials purchased at concessional rate which are used in the manufacture or packing of goods for stock transfer. The next question pertains to the assessment of old freezers which is an item taxable under the Fifth Schedule. The petitioner's case is that the freezers were purchased from SSI units by availing of concessional rate and, therefore, they are entitled to exemption on second sales. Exemption on second sales wil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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