2014 (5) TMI 30

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..... e Assessing Authority ('the AA') while assessing the respondent-assessee for the quarter 01.12.1991 to 31.03.1992 (1991-92) noticed that the assessee had purchased goods from the unregistered dealers and supplied it against Form-H to the exporter, who in turn, sold it in the course of export outside the country. The AA felt that since the goods sold were purchased from unregistered dealers, the assessee was liable to pay purchase tax under Section 5A of the Rajasthan Sales Tax Act, 1954 ('the Act'). Consequently, vide assessment order dated 04.04.1994 levied purchase tax in a sum of Rs. 43,998/- and imposed interest amounting to Rs.20,245/-. 3. Aggrieved by the assessment order dated 04.04.1994 the assessee filed an appeal before the DC (A .....

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..... Tax Board regarding applicability of Section 5(3) of the CST Act cannot be supported, the ultimate result arrived at by the Tax Board can very well be supported based on the reasoning given by the DC (Appeals), which in the submission of learned counsel was the correct view and, therefore, in any case the revision petition was liable to be dismissed. 8. I have considered the rival submissions made at the Bar. 9. It is not in dispute that the goods were purchased by the assessee from unregistered dealers and, therefore, the same was liable for payment of purchase tax under Section 5A of the Act. However, the question arises as to whether the assessee was entitled to exemption under the Notifications as held by the DC (Appeals) or under Sec .....

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..... f such export, therefore, in the present case, though the sale made by the assessee to the exporter, which is the sale preceding the sale occasioning the export of the goods out of the territory is covered by the said provision, the purchases made by the assessee from the unregistered dealers would not be covered by the said provision and, consequently, would not be exempt as held by the Tax Board. 12. However, exemption Notification, as amended, as noticed hereinbefore reads thus:-      "S.No.917 : F.4(8)FDGr.IV/94-51 dated 7.3.1994      S.O. 181. - In exercise of the powers conferred by S.4(2), RST Act, 1954, the State Govt. [1] hereby exempts from tax the purchase of all goods made upto 31st Mar .....

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