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2010 (11) TMI 878 - HC - VAT and Sales TaxWhether the Tribunal was justified in cancelling levy of tax under section 5A of the Kerala General Sales Tax Act, 1963? Held that:- It is seen from the assessment order that the assessee is given set-off of tax levied on paddy against tax liability on rice and only net amount is allowed set-off from the exemption available in the certificate. In view of the scheme of levy stated as above, it will be perfectly in order to set off the tax liability determined under section 5A also against exemption available under certificate of exemption along with net tax determined on rice after reducing the tax levied on paddy. In other words, the total amount to be set off against exemption granted under certificate should be the tax levied on rice without granting rebate of tax on paddy. The assessing officer is directed to verify the exemption granted for all the years based on the certificate and the scheme suggested above will be applied only if the assessee continued business till full exemption available under certificate is set off as indicated above. Sales tax revision is allowed to the extent indi cated above.
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