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2009 (3) TMI 545 - SC - VAT and Sales TaxWhether export sales are includible in "notional tax liability" of a unit as defined in rule 28A(2)(n) of the 1975 Rules? Held that:- Appeal allowed. One has to read the proviso in rule 28A(4) with Explanation 1 which states that "for the purposes of arriving at the limit of tax exemption/deferment, the notional sales tax liability of the unit shall be taken into consideration". It is because of the said Explanation that "notional sales tax liability" has been defined in rule 28A(2)(n). Therefore, one has to go strictly by the definition of the words "notional sales tax liability" in the said rule 28A(2)(n) of the 1975 Rules. Thus export sales were not includible in the matter of calculation of "notional tax liability" during the period in question.
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