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TMI Blog2023 (1) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... yog and Canteen Stores Department/ Military Canteens. The Circular dated 23rd July, 1987 has to be read in harmony with the Notification dated 31.01.1985, as the Notification of 1985 also provided exemptions of tax subject to certain conditions. Due to contradictions existing between the earlier notifications of the Government, Circular dated 23.07.1987 was issued on the direction of the State Government re-conciling the said fact. Though, the Circular of 23rd July, 1987 does not take note of the Notification dated 31.01.1985, but it mentions of the Notification dated 03.02.1981 which disallowed the exemptions under Section 8(2A) of CST. The Apex Court in Paper Products Ltd. [[ 1999 (8) TMI 70 - SUPREME COURT] ] and M/s Indra Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption under State Law is conditional and there is no notification. 3. While the Revision No.301 of 2013 and Revision No.303 of 2013 were admitted on the following question of law:- Whether under the facts and circumstances of the case, the Commercial Tax Tribunal was legally justified in granting exemption u/s 8 of the Central Sales Tax Act whereas exemption under Notification No. 7037 dated 31.1.1985 was conditional in nature and not general as such benefit under section 8(2A) of the Central Sales Tax Act is illegal? 4. As the issue, in both the sets of revisions, are one and the same, with the consent of the parties, the revisions are being heard together and decided by a common order. 5. Facts, in brief, are that the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x in view of Section 8(2A)/8(2C) (by Amendment dated 11.05.2002 in the CST, Section 8 (2C) was substituted in place of Section 8 (2A)), hence the present revisions. 8. Sri A.C. Tripathi, learned Standing Counsel appearing for the Revenue submitted that the Tribunal was not justified in granting exemption under Section 8 of the Central Sales Tax Act relying upon the notification dated 31.01.1985 which was conditional and only on the fullfillment of the condition, the exemption could have been provided. He further contended that there is no notification issued under Section 8(5) of the CST granting exemption on supply of goods from one canteen store department to another outside the State, the benefit could not have been passed upon the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CST. He placed reliance upon the Circular of the Commissioner Trade Tax dated 23.07.1987 and also on the decision of the Co-Ordinate Bench of this Court in case of M/s Dabur India Limited (supra). 11. According to learned Senior Counsel, a Circular issued by Commissioner is binding upon the department, and they cannot contend contrary to it. Reliance has also been placed upon the decision in case of Commissioner of Sales Tax Vs. S/s Agrawal Rolling Mills, Mirzapur 2003 U.P.T.C. 1248. 12. I have heard learned counsel for the respective parties and perused the material on record. 13. The questions of law on which these revisions have been admitted are as to whether the Tribunal was justified in granting exemption under Section 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent that Notification dated 31st January, 1985 was conditional and the same has not been relied upon by the Co-ordinate Bench in M/ s Dabur India Limited (supra), the benefit passed upon by the Tribunal could not be extended, is wholly misplaced. The Notification No.7037, dated 31st January, 1985 was published by the State Government granting exemption from 1st February, 1985 to the sale or purchase of goods mentioned in column-2 subject to condition specified in column-3. At serial no.18, purchases and sales by Canteen Stores Department/ Military Canteens has been exempted subject to the condition provided in column-3. Relevant part of the notification is extracted here as under:- 18. Sales to or purchases and sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le made to institutions will be exempted from tax. 19. The Circular dated 23rd July, 1987 has to be read in harmony with the Notification dated 31.01.1985, as the Notification of 1985 also provided exemptions of tax subject to certain conditions. Due to contradictions existing between the earlier notifications of the Government, Circular dated 23.07.1987 was issued on the direction of the State Government re-conciling the said fact. Though, the Circular of 23rd July, 1987 does not take note of the Notification dated 31.01.1985, but it mentions of the Notification dated 03.02.1981 which disallowed the exemptions under Section 8(2A) of CST. 20. The argument of State Counsel cannot be accepted to the extent that the judgment of Dabur Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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