9911796707
TMI Blog2019 (11) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... re effected to registered dealers outside the State of Kerala. Ext.P1 notification, admittedly, did not make a distinction between sales to registered dealers and unregistered dealers outside the State and it is therefore that the petitioner was able to claim the benefit of exemption in terms of Ext.P1 notification. When it was noticed that Ext.P1 notification was beyond the powers of the State Government, Ext.P8 notification was introduced so as to remove the illegality in Ext.P1 notification. Inasmuch as the illegality is one that stems from an exercise of power contrary to the provisions of the parent statute (the CST Act), the petitioner cannot contend that the respondents are estopped from withdrawing the benefits conferred through Ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e through interstate sales effected by him. By Ext.P1 notification dated 31.7.2008, the State Government exempted the tax payable under sub-section 1 or 2 of Section 8 of the CST Act on the turnover of sale of natural rubber and tread rubber in the course of inter-state trade, subject to the condition that the natural rubber or the compounded rubber that was used in the production of tread rubber had suffered tax under the Kerala Value Added Tax Act, 2003. It is not in dispute in the instant case that the petitioner obtained the benefit of Ext.P1 notification in respect of the interstate sales of tread rubber effected by him for the assessment years from 2008-2009 to 2013-2014. While so, by Ext.P8 notification dated 30.11.2011, the State Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that in almost similar circumstances that arose under the Kerala General Sale Tax Act, where a notification had been issued in 1993 granting exemption to Khadi and Village Industrial units recognised by the Kerala Khadi and Village Industries Board, in respect of interstate sales effected by them, and the benefit of exemption was sought to be denied based on the amendments brought about to Section 8(5) of the CST Act with effect from 11.05.2002, this Court found that the subsequent amendment to Section 8(5) of the Act could not be made applicable to dis-entitle the assessee for the exemption claimed in terms of the 1993 notification. In particular, it was found that the assessee would not be in a position to secure C-form declarations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions made across the Bar, I find force in the submission of the learned Government Pleader with regard to the inherent illegality in Ext.P1 notification that granted the benefit of exemption to the petitioner in the instant cases. It is not in dispute that as per the provisions of Section 8(5) as it then stood, the State Government had a power to grant exemption in public interest in respect of the tax to be paid on interstate sales, only in respect of those sales that were effected to registered dealers outside the State of Kerala. Ext.P1 notification, admittedly, did not make a distinction between sales to registered dealers and unregistered dealers outside the State and it is therefore that the petitioner was able to claim the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner would submit that, even if the benefit of exemption is denied to the petitioner, in the assessments that were completed against him for the aforementioned years, the petitioner should at least be granted the benefit of set off of input credit against the output tax paid in respect of the interstate sales effected by him. I find force in the said contention of the learned counsel for the petitioner and direct that, in the fresh orders to be passed by the respondent assessing authority, pursuant to the findings in this judgment, the assessing authority shall consider the returns filed by the petitioner, and take note of the tax paid by the petitioner on the purchase of inputs relatable to the tread rubber sold interstate to unregiste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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