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2007 (7) TMI 618 - KARNATAKA HIGH COURTBenefit of sales tax exemption denied - Whether, in the facts and circumstances of the case, the Appellate Tribunal was right in upholding the orders of the lower authorities denying to the petitioner the benefit of sales tax exemption in terms of G.O. No. CI 140 SPC 93 dated July 12, 1993 read with the certificate of sales tax exemption dated October 10, 1995 granted by the District Industries Centre, Mysore, certifying sales tax exemption on the finished goods? Held that:- We have to answer the finding recorded by the assessing authority, the appellate authority and Karnataka Appellate Tribunal as erroneous in law and non-consideration of the same would vitiate the orders as the same are contrary to the Government order, notification and the certificate issued by the District Industries Centre, Mysore, in favour of the assessee. Therefore, the abovesaid question is answered in favour of the assessee and against the Revenue. In view of the undisputed facts and the certificate issued by the competent officer certifying that the assessee has been manufacturing the goods of turmeric powder by following certain manufacturing processes such as the roots of turmeric are boiled, dried, powdered and coloured. The above manufacturing processes involved in manufacture of turmeric powder, which is one of the spices different and distinct from the roots of turmeric. Therefore, we have to hold that there is a manufacturing process involved in manufacture of turmeric powder from roots of turmeric. This has been rightly certified by the certifying officer but not accepted by the assessing authority, the appellate authority and Karnataka Appellate Tribunal without assigning valid reasons. Therefore, the findings of the assessing authority, the appellate authority and Karnataka Appellate Tribunal are not only erroneous but error in law. Therefore questions of law framed in this petition by the petitioner are also required to be answered in favour of the assessee.
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