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2009 (4) TMI 950

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..... e dealer, sales tax exemption can be availed by the company. Incorporation of the said amended portion of sub -section (5) of Section 8 was notified to the company by issuing the notification impugned in the writ petition. The appellant dealer cannot contend that the amended provisions of sub -section (5) of Section 8 of CST Act is not applicable to it and therefore the impugned notification adding additional conditions are bad in law - The grant of sales tax exemption in favour of the appellant -company is a benefit. Therefore, the same cannot be claimed as a matter of right. The assessment order was passed for the period from 1 -4 -2004 to 31 -3 -2005 onwards as the appellant has not complied with the requirements of sub -section ( .....

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..... 9(2) of the CST Act read with Section 19C of the KST Act, incorporating additional condition to the exemption notification dated 8 -6 -1998. In the said notification for the words exempts the tax payable under the Central Sales Tax Act, 1956 , the words exempts the sales tax payable under sub -section (2) of Section 8 of the CST Act are substituted. 2. Pursuant to the amendment, the Government issued notification dated 31 -5 -2002 Annexure -E in exercise of the power under sub -section (5) of Section 8 of the CST Act, stating that furnishing of declaration in Form 'C' or certificate in Form 'D', as the case may be, is a must for availing the benefit of tax exemption. Accordingly, the Government of Karnataka has granted .....

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..... tarted its commercial production on 5 -11 -1996. During the period of sales tax exemption, the State Government has issued the impugned notification on the basis of the amendment to the provision of Section 8(5) of the CST Act, which is prospective in nature. The same cannot be given retrospective effect in view of the earlier sales tax exemption notification. This action of the State Government amounts to incorporating a new condition to the earlier exemption notification already issued by the State Government in favour of the appellant -company. It is further urged that issuance of the impugned notification with modification to the earlier exemption notification by adding one more condition to produce declaration and certificate in For .....

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..... fication, order and notices are liable to be quashed. 5. The learned AGA has sought to justify the impugned notification, order and proposition notices contending that the same are in accordance with the provisions of the CST and KST Acts and also in accordance with law. Further he has contended that the legal grounds urged by the learned Senior Counsel are considered by the learned Single Judge and passed the order, which does not call for interference by this Court in exercise of its power and no substantial question of law involve in this appeal. 6. With reference to the above rival legal submissions made on behalf of the appellant and respondents, we have carefully examined the reasons assigned by the learned Single Judge in the i .....

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..... red dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority; or (b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly Authorised Officer of the Government: Provided that the declaration referred to in clause (a) is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit . 8. No doubt sales tax exemption is granted in favour of the appellant's company from the year 1998 for a period of 12 years i.e., from the date of commencement of the production of its goods. In the meanwhile, the parliament, in ex .....

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..... ant. 11. The assessment order was passed for the period from 1 -4 -2004 to 31 -3 -2005 onwards as the appellant has not complied with the requirements of sub -section (4) of Section 8 of CST Act. 12. The assessment period relates to subsequent to amendment and to avail the exemption benefit the appellant ought to have fulfilled the requirements. It cannot stick on only to the conditions imposed earlier and ignore the additional requirements to be complied with. The Assessing Authority has also issued the proposition notices and the same cannot be found fault with by the appellant as it can file objections to the same. Therefore, the learned Single Judge rightly dismissed the writ petition. While we concur with the same, we have also s .....

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