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TMI Blog2011 (4) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit to which the assessees are entitled to which is conferred on them under the notification under a parliamentary Legislation. Hence,appeals are allowed. - S.T.A. Nos. 102, S.T.A. Nos. 103 of 2009 - - - Dated:- 7-4-2011 - KUMAR N. AND RAVI MALIMATH JJ. Indrakumar, Senior Counsel for E. I. Sanmathi for the petitioners Smt. S. Sujatha, Additional Government Advocate, for the respondent JUDGMENT These two appeals are preferred by the Revenue against the order passed by the revisional authority who has disallowed the benefit of exemption granted by the appellate authority to the assessees. As the question involved in both the appeals are one and the same, they are taken up together for consideration and disposed of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e period April 1, 2004 to April 1, 2005 and the assessees are not liable to pay Central sales tax, if the said goods are sold outside Karnataka and therefore, he granted the relief and set aside the order of the assessing authority. The Additional Commissioner of Commercial Taxes initiated suo motu proceedings of revision under section 64(1) of the Act on the ground that the benefit of the notification cannot be availed of from April 1, 2005. Rule 166(5A) inserted from April 1, 2006 is effective for the period during which the transit relief under section 18 read with rule 166 is applicable. The transit relief is no longer applicable from January 1, 2006 as per the provisions of section 18 read with rale 166 and consequently, this rale inse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered dealer or the Government shall be exempt subject to production of declaration in form C or certificate in form D, duly filled and signed by the registered dealer or the Government to whom the said goods are sold:- (1) to (3) ... (4) Arecanut, coffee beans and coffee seeds (whether raw or roasted), horse gram (hurali), halasande, tamarind and tamarind seeds on which tax under the provisions of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) has already been paid. This is a notification issued under the Central Sales Tax Act, 1956. Under the notification, the benefit is given to a dealer who has paid tax under the Karnataka Sales Tax Act, 1957 in respect of arecanut and other seeds mentioned therein. If areca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 on dealers was extended under this Act for purchases made one year prior to coming into force of the VAT Act which are used for manufacture or resale on the date of commencement of the VAT Act. Section 18 specifically mentions that the said benefit shall be as prescribed. Rule 166 of the VAT Rules deals with transitional relief of stock in hand and in rum extended the benefit mentioned in section 18. However, the said provision was amended by the Karnataka Value Added Tax (Amendment) Rules, 2006 incorporating the said sub-rule (5A), which came into effect from March 31, 2006. However, by a further amendment on April 26, 2006, rule 166 itself was omitted from the Rules. Rule 166(5A) reads as under:- (5A) No relief shall be allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t only refers to Karnataka sales tax Act to the transitional relief. A reading of the aforesaid provisions makes it very dear that once a dealer has paid Karnataka sales tax under the KST Act, he is entitled to the exemption under the notification. In that view of the matter, the authorities are in total error in taking note of section 18, rule 166 and amendment of rule 166 to deny the benefit of exemption under the enactment, which have in no way been dented by any of these subsequent events, by way of the amendments, omissions and deletion. In that view of the matter, we do not see any justification to deny the benefit to which the assessees are entitled to which is conferred on them under the notification under a parliamentary Legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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