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2013 (5) TMI 539 - HC - VAT and Sales TaxInterstate sale or not - CST - passive infrastructure provider - whether goods purchased by the petitioners/dealers (for the purposes of building, operating and maintaining passive telecom infrastructure and where on the towers erected and maintained but nonetheless continued to be owned by the petitioner—the passive infrastructure provider ; goods which are indisputably integrally associated with the building and maintenance of the cell towers), are goods falling within the ambit of section 8(1) read with the provisions of section 8(3)(b) of the CST Act, and thus eligible only at the concessional rate of tax provided in section 8(1). Held that - In the facts and circumstances of this lis, in view of the rationales deducible from the judgments of the Supreme Court in Rajasthan Electricity Board [1996 (8) TMI 455 - (SC)] and in J. K. Cotton Spinning and Weaving Mills Co. Ltd. [1964] 10 TMI 2 - (SC)], we are of the considered view that the purchase of goods by the petitioners from outside the State, comprising goods specified in the certificates) of registration under the CST Act granted to them against issue of C forms and where the goods have been employed in erection and maintenance of cell phone towers which are integral to telecommunication network, fall within the ambit of section 8(1) read with section 8(3)(b) of the CST Act and are entitled to be taxed accordingly. The fact that the goods purchased by the petitioners were neither sold nor used in the manufacture of goods for re-sale does not constitute violation of the C forms. Consequently, levy of penalty, on the factual parameters apparent on the record of these cases, is unsustainable. - Penalty waived - Decided in favor of assessee.
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