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2015 (11) TMI 47 - KERALA HIGH COURTLevy of purchase tax - Section 5A - Reopening of assessment - exemption from sales tax on sale of rice and bran - Tribunal held that the assessing authority cannot levy tax on purchase under Section 5A of the Act 1963, when the stage of levy is already fixed in the State Enactment - Held that:- assessee having purchased paddy from agriculturists, no tax was leviable or realised on the first sale of paddy, since the sale was from agriculturists, who were exempted to pay any sales tax. - Paddy being a declared goods under the Central Sales Tax Act, 1956 as well as the second schedule of the Act, 1963, the provisions of Section 15 of the Central Sales Tax Act, 1956 are also attracted. Section 14 of the Central Sales Tax Act, 1956 enumerates the goods, which have been declared as goods of special importance in Inter State trade or commerce. Under Section 14, paddy and rice both have been declared as goods of special importance. Under Section 5 read with second schedule to the Act, 1963, sales tax was leviable on sale of paddy. Although the tax is leviable on the sale of paddy as per second schedule, tax could not be collected on account of exemption to the agriculturists in sale of their paddy. The assessing officer although initially did not assess the assessee for any purchase tax on paddy, but subsequently, assessment was reopened and assessee was held liable to pay purchase tax under Section 5A on the purchase of paddy. - first sale was by agriculturists in favour of the assessees, who were not liable to pay tax. The mere fact that payment of tax was exempted cannot furnish any basis for the respondents to shift the liability of tax on purchase, whereas, under second Schedule, liability is only on first sale. As per Section 15(a), there is restriction in levying tax by a State Legislature on more than one stage. When the second schedule has levied the tax on the first sale, there is no jurisdiction in the respondents to shift the levy on purchase. Tribunal which rightly deleted the levy of purchase tax on the assessee and committed no error in following the Apex Court judgment in Peekay Re-Rolling Mills's case (2007 (3) TMI 356 - SUPREME COURT OF INDIA). - Decided against Revenue.
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