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TMI Blog2014 (5) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in rejecting the plea of the assessee that the notification granting exemption to sale by Tamil Nadu Electricity Board cannot be considered as a circumstance to apply to the assessee to exclude the charge u/s 7-A of the Act - Quite apart from that Section 7-A itself underwent an amendment with effect from 1.1.1987. In the light of the provisions u/s 3 as well as Section 7-A of the Act, before the amendment in the 1986 i.e. upto 31.12.1986, and there afterwards from 1.1.1986 onwards, no hesitation in holding that the assessments were correctly made and the Tribunal's order is in accordance with the principle of law laid down by the Apex Court in KANDASWAMI [Supra] and HOTEL BALAJI [[Supra] - Revision is dismissed - Consequently, connected MP is also dismissed – Decided against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... t Schedule), fresh fruits, betel and plantain leaves, flowers, eggs, meat and fish (other than canned meat and fish), the rate shall be one per cent. 7-A. Levy of purchase tax (1) Every dealer who in the course of his business purchases from a registered dealer or from any other person, any goods (the sale or purchase of which is liable to tax under this Act) in circumstances in which no tax is payable under sections 3, 4 or 5 as the case may be, and either, (a) consumes such goods in the manufacture of other goods for sale or otherwise; or (b) disposes of such goods in any manner other than by way of sale in the State ; or (c) despatches them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce, shall pay tax on the turnover relating to the purchase aforesaid at the rate mentioned in sections 3, 4 and 5, as the case may be, whatever be the quantum of such turnover in a year. Provided that a dealer (other than a casual trader or agent of a non-resident dealer) purchasing goods (the sale of which is liable to tax under sub section (1) of Section (3)) shall not be liable to pay tax under this sub section if his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int of sale or purchase, as the case may be. G.O. Ms. No. 1091 is one of them. We have already noticed the rather qualified terms in which the exemption is couched. It is not a general exemption but a qualified one. In the light of the specific scheme of Section 9 and the language of G.O. Ms. No. 1091, the exemption at the point of sale by a particular category of persons cannot be construed as operating to exempt the purchase tax under Section 6-A as well, much less in all cases. " 7. In the decision reported in 1992(1) MTCR 337 STATE OF TAMIL NADU v. MURUGAPPA & CO., this Court had an occasion to consider the case of conditional exemption on the levy of purchase tax. The facts therein was that the assessee who was a dealer in livestock purchased the same and transported to Kerala for slaughtering and to sell it as a meat. As per the notification in G.O.Ps. 1858 Revenue dated 6.9.1969 sales by any dealer of sheep, goat, cows, bulls, bullucks, pigs and other animals, for slaughter, were exempted from tax. Noting the fact that the exemption was a general one, the assessee was not liable to suffer purchase tax under Section 7-A of the Act. This Court pointed out "the focal point in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinguished the same, holding that the notification therein enured to the benefit of the assessee therein, which was not so in the case of restrictive exemption. 9. A reading of these decisions of this Court and in the context of the decision reported in [1993] 88 STC 98 HOTEL BALAJI v. STATE OF A.P., and [1975] 36 STC 191 STATE OF TAMIL NADU v. KANDASWAMI, it is thus clear that the scheme of purchase tax levy under Section 7-A of the Act does not cover cases of sale or purchase of goods totally exempted from tax at all points under Section 8 or Section 17(1). However, where the exemption is a qualified one, be it goods related or dealer related, purchase or sale of goods subjected to any of the contingencies enumerated under Section 7-A, would certainly attract the charge under Section 7-A of the Act. Going by these decisions, we have no hesitation in rejecting the plea of the assessee that the notification granting exemption to sale by Tamil Nadu Electricity Board cannot be considered as a circumstance to apply to the assessee to exclude the charge under Section 7-A of the Act. Quite apart from that Section 7-A itself underwent an amendment with effect from 1.1.1987 which rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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