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2017 (10) TMI 1018 - KERALA HIGH COURTLevy of purchase tax - The stand of the Department is that since the petitioner is not liable to pay tax on sales of treated Rubber wood by virtue of the exemption order, the petitioner cannot have the benefit of S.R.O.No.9/2007 - whether the petitioner is entitled for the benefit of exemption of purchase tax payable under S.5A of Kerala General Sales Tax Act, 1963? - Held that: - The petitioner themselves are the manufacturer. They are exempted from payment of sales tax. All manufacturers, who are liable to pay tax either under KGST Act or Central Sales Tax are eligible for exemption. Nobody has a case that the petitioner is not liable to pay tax but for the exemption given to them. Granting an exemption itself would show that the petitioner is liable to pay tax. Non-payment of tax itself will not make the manufacturer ineligible for the benefit of S.R.O.No.9/2007. Since the petitioner is liable to pay sales tax, though they need not pay tax by virtue of exemption, certainly, they would be entitled for the benefit of S.R.O.No.9/2007 - petition allowed.
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