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2015 (7) TMI 896 - HC - VAT and Sales TaxPartial exemption scheme - to increase inter-State sales and decrease the quantum of branch transfers - constitutional validity of Sections 26 and 82(3) of the Rajasthan Value Added Tax Act, 2003 - method of calculations - Held that:- under the notification dated 6.5.1986 incentive is given with a view to enhance inter State sales with a view to enhance State revenue in the form of sales tax and that object can be served with the cooperation of dealers only. The purpose of the notification can very well be failed, if the dealers do not act as desired by the State by increasing inter State sales and reducing branch transfers. The State Government only to have support of the dealers extended partial exemption to them. This incentive is given to the dealers by the State from its own revenue in the form of exemption to have a positive action by the dealers for shifting to inter State sale from branch transfers, as such, the notification dated 6.5.1986 though uses the term “partial exemption” but in fact is a“partial disbursement of State revenue” earned due to the efforts made by the dealers for its enhancement. In view of whatever stated above, these petitions for writ deserve acceptance, accordingly, the same are allowed. The initiation of impugned proceedings against the petitioner as per Section 26 of the VAT Act is declared illegal and the notices issued thereunder and orders made thereon are also declared illegal, hence are quashed - Decided in favor of assessee.
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