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TMI Blog2011 (4) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... material on record and defeats the very purpose behind the issue of the notification. The benefit granted by the State to a new entrepreneur by way of exemption from payment of entry tax cannot be denied by placing such literal interpretation in so far as the procedure prescribed, ignoring the main notification which grants such exemption. In that view of the matter, the order passed by the revisional authority is illegal and cannot be sustained and is liable to be set aside. Hence, Appeal is allowed. The impugned order is hereby set aside. The order of the appellate authority is restored - TAET No. 8 of 2009, Misc. CVL No. 4385 of 2010 - - - Dated:- 18-4-2011 - KUMAR N. AND RAVI MALIMATH JJ. B.G. Chidananda Urs and B.S. Prasad for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not mention anything about the diesel generating set entitling the assessee to the exemption from payment of entry tax, a proposition notice was issued calling upon him to show cause as to why entry tax may not be imposed on DG set and also why penalty should not be imposed. The assessee entered appearance, filed statement of objections and pointed out that in view of the notification issued, no entry tax is payable for DG set. However, the said objection was overruled and the demand was confirmed by the Assistant Commissioner of Commercial Taxes. Aggrieved by the same, the assessee preferred an appeal. The appellate authority, taking note of the notification granting exemption and also a judgment of this court, held that the DG set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order. The Notification No. FD.161.CET.2001(I), dated November 30, 2001, Karnataka Gazette, Extraordinary, dated November 30, 2001, which grants exemption reads as under:- In exercise of the powers conferred by section 11A of the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Government of Karnataka being of the opinion that it is necessary in public interest so to do, hereby exempts the tax payable under the said Act:- (i) during the implementation of the project on the entry of production machinery and equipments directly involved in the production process into a local area caused by a new industrial unit subject to the condition that the benefit will be available for a maximum period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f commercial production; Relying on this, it is contended that in the certificate issued, there is no mention about DG set and therefore, the assessee is not entitled to exemption. The exemption for payment of entry tax is by virtue of the notification as aforesaid. The said notification categorically exempts from payment of entry tax on any goods which are purchased in the implementation of the project on the entry of production machinery and equipments directly involved in the production process into a local area caused by a new industrial unit. He has also purchased machinery and equipment from outside the local area. Along with the said plant and machinery he has purchased the DG set. The DG set is a machinery and equipment which is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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