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2004 (4) TMI 292 - SC - VAT and Sales TaxWhether the State has power and competency to levy tax on paddy, purchased by the miller for sale of rice to the exporter, in view of section 5(3) read with section 15(ca) of the Central Sales Tax Act, 1956? Held that:- Appeal dismissed. Clause (ca) contains a limited deeming fiction, which only applies to sale of rice by the exporter. This fiction is attached to the purchased commodity which is paddy from which rice is procured and not the exported commodity. Clause (ca) equates the two commodities only in cases where rice procured from paddy is exported and not to any other case. Accordingly, we hold that the purchase of paddy by the appellants in these cases is not exempt from the levy of a tax. Such purchases do not fall within section 5 of the 1956 Act. The sale by the exporter is however, exempt under section 5(1) and the purchase of paddy by the miller-cum-exporter is covered under section 5(3) of the 1956 Act.
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