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2014 (5) TMI 796 - HC - VAT and Sales TaxExemption of Tax – Levy of purchase tax - Whether exempted turnover would come into reckoning of the charging provision u/s 7A – Tamil Nadu Electricity Board Notified that all sales of goods u/s 17(1) of the TNGST Act are exempted from tax - Held that:- Judgments in STATE OF TAMIL NADU v. KANDASWAMI [1975 (7) TMI 123 - SUPREME COURT OF INDIA] and HOTEL BALAJI v. STATE OF A.P.[ 1992 (10) TMI 240 - SUPREME COURT OF INDIA] followed - The scheme of purchase tax levy u/s 7-A of the Act does not cover cases of sale or purchase of goods totally exempted from tax at all points u/s 8 or Section 17(1) - However, where the exemption is a qualified one, be it goods related or dealer related, purchase or sale of goods subjected to any of the contingencies enumerated under Section 7-A, would certainly attract the charge under Section 7-A of the Act - Going by these decisions, there is no hesitation in rejecting the plea of the assessee that the notification granting exemption to sale by Tamil Nadu Electricity Board cannot be considered as a circumstance to apply to the assessee to exclude the charge u/s 7-A of the Act - Quite apart from that Section 7-A itself underwent an amendment with effect from 1.1.1987. In the light of the provisions u/s 3 as well as Section 7-A of the Act, before the amendment in the 1986 i.e. upto 31.12.1986, and there afterwards from 1.1.1986 onwards, no hesitation in holding that the assessments were correctly made and the Tribunal's order is in accordance with the principle of law laid down by the Apex Court in KANDASWAMI [Supra] and HOTEL BALAJI [[Supra] - Revision is dismissed - Consequently, connected MP is also dismissed – Decided against assessee.
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