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TMI Blog1991 (12) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1956 and a writ of mandamus compelling the Respondent not to give due effect to the direction insisting on production of Sales Tax Clearance certificates by the Petitioners and other members of the first Petitioner Association, No counter affidavit has been filed on behalf of the Respondents though Sri Chaliha, learned Govt. Advocate opposes the writ petition. 2. First Petitioner is an Association of actual craftsmen of certain locality in Karimganj Sub-division, who produces varieties of bamboo and cane products. It is said that the undertaking is recognized as village industry covered by the provisions of Assam Khadi and Village Industries Board Act, 1955 and the Khadi and Village Industries Commissions Act, 1956. It is further a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yance of these products. 4. Section 7 of Assam Sales Act, 1947 deals with exemptions, Sub-section (1) states that subject to the conditions and exceptions, if, any, set out in Schedule III attached to this Act, the sales of goods specified therein shall be exempt from taxation under this Act. 5. Entry 52 in Schedule III reads as follows: Sl. No. Conditions and exceptions subject to which exemption has been allowed. ** *** 52. Khadi/and or products of Village Industries as defined in the Khadi and Village Industries Commission's Act, 1956. When sold by a producer and/or organization certified for the purpose by the Khadi a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the writ Petitioners that members of the first Petitioner Association produce these articles and sell these articles, and that these producers who sell the articles possess certificates issued by the competent officer of the Board. That being so, sales effected by these persons squarely attract Entry 52 of Schedule III of the Assam Sales Tax Act, 1947. 8. Section 8 of the Central Sales) Tax Act, 1956 deals with the rates of tax on sales in the course of inter State trade or commence. Sub-section 2A with the explanation reads as follows: (2A) Notwithstanding anything contained in Sub-section (1A) of Section 6 or Sub-section (1) or Clause (b) of Sub-section (2) of this section, the tax payable under this Act by a dealer on his tur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If under the State Law the sale of goods is exempt only in specified circumstances or under specified conditions, it is not a case of general exemption from tax. The explanation throws light on the meaning of the words exempt from tax used in the main provision. Where exemption is not limited only to specified circumstances or when exemption is not granted only under specified conditions, it is a case of general tax exemption. 10 . Entry 52 of Schedule III of the Assam Sales Tax Act, 1947 exempts sale of produce of village industries when sold by a producer and or organization certified for the purpose of the Khadi Industries Board. The members of the first Petitioner Association are producers, who possess such certificates. If they ..... X X X X Extracts X X X X X X X X Extracts X X X X
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