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2012 (8) TMI 866 - KARNATAKA HIGH COURTWhether the Karnataka Appellate Tribunal is justified in setting aside the order passed by the assessing authority under section 6(1) of levying tax on the DG sets, parts and accessories along with interest and penalty? - Held that:- In the instant case, it is clear that the imported DG sets after getting exemption of entry tax, producing the certificate to the effect that the assessee is 100 per cent export oriented unit, has manufactured the goods for domestic sale. The turnover referred to above clearly disclose that the percentage of export is very negligible compared to the total turnover. Hence, the respondent is not entitled for the benefit of the Government Notification dated November 30, 2001. The reasoning of the Appellate Tribunal that the Government Notification does not prescribe any condition that the capital goods used in the manufacturing of goods for export or that the power generated from the DG sets should be exclusively and to the full extent used for the production of 100 per cent export oriented unit and there is no prohibition for use of the power generated from the DG set runs contrary to the Government Notification dated November 30, 2001 and it is erroneous in law. The assessing authority after considering the matter in detail reassessed the tax liability and the same was confirmed by the appellate authority. The finding recorded by the assessing authority as well as the appellate authority is purely a question of law. The Appellate Tribunal ought not to have interfered with the same. Hence, the order passed by the Appellate Tribunal cannot be sustained. The substantial question of law framed in this revision petition is held against the assessee and in favour of the revision petitioner. Appeal allowed.
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