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2012 (2) TMI 464 - HC - VAT and Sales TaxAdditional duty on non production of proof - exemption denied - Held that:- The conditions imposed for claiming exemption in no way contemplate a dealer providing proof of payment of additional duties of exemption by the manufacturer. A proof of this nature is obviously not contemplated in the Scheme of this Act. The exemption granted in respect of the items figuring in entry 3 are not qualified by a condition that it should be purchased from a manufacturer. Thus the argument on behalf of the Revenue to the effect that the dealer having never made good that his purchase turnover was one corresponding to the very description of the goods as in the Schedule to the Additional Duties of Excise Act in the absence of production of proof of payment of additional duty of excise and is not entitled for exemption and therefore, the order passed by the Additional Commissioner is justified and to be sustained on such logic is not a tenable argument. The Additional Commissioner did not issue show-cause notice proposing for revision either on the ground that the dealer had not made good the precise goods which he had purchased were covered under the Schedule to the Excise Act or on the premise that they have not been sold as such, but utilised in manufacturing. Show-cause notice was only one confining to non-production of the proof of payment of additional duties and the order for denying exemption is also on the same reason and therefore, the order passed by the Additional Commissioner cannot be sustained. Appeal allowed.
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