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2009 (3) TMI 941 - HC - VAT and Sales TaxWhether once the Tribunal's orders are confirmed by this court relegating the appellants to face assessment, there is no justification to challenge the circular in writ proceedings? Held that:- We do not find any justification to uphold circular which interferes with the scheme of assessment and exemption granted to large dealers in the State. Going by the Department's own stand the appellant is not liable to pay sales tax on centrifuged latex as it is not a rubber product. As already found centrifuged latex continues to be rubber taxable at last purchase point. So much so the conversion of field latex into centrifuged latex cannot be treated as manufacture of a rubber product for the purpose of levy of tax under entry 39 of the First Schedule. Since the Department has not treated centrifuged latex as a rubber product at the hands of either the seller or purchaser there is no justification to demand tax at the purchase point of field latex. In view of the findings the writ appeal allowed and quash exhibit P33 circular to the extent it says that centrifuged latex is a rubber product up to March 31, 1988.
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