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1987 (9) TMI 379 - SUPREME COURTWhether as a fact the appellant has paid sales tax on the purchase of sun-baked bricks from the seller as claimed and the appropriate declaration has been produced in the assessment proceedings? Whether bricks used in the notification of 1973 covered sun-dried bricks? Held that:- Appeal allowed. It is not disputed by the appellant's counsel that the sale price of bricks which had been purchased as sun-dried bricks and sold for the price of Rs. 1,49,600.92 were burnt by the appellant. On the finding that the appellant had further treated the sun-dried bricks and produced goods of added value, we do not think it would be proper to extend the benefit of total exemption for the turnover of sale of bricks from tax. The notification of the State Government is somewhat misleading; it would thus be appropriate to allow set-off of the tax paid at the time of the purchase of the sun-dried bricks out of the tax exigible on the taxable turnover of burnt bricks. While setting aside the judgment of the High Court we would direct that until appropriate amendment to the notification is made, the State should adopt the modality indicated above. In the instant case if it is found that the appellant had paid sales tax to Sardool Singh, the amount of tax then paid should be given credit and the balance should be recovered.
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