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2016 (7) TMI 546 - HC - VAT and Sales TaxEntitlement of composition scheme - conditions and restrictions imposed under Rules 135 and 144 of the KVAT Rules, 2005 - they were "goods in stock" - demand of regular tax on the sales/turnover as per Section 3 of the KVAT Act, 2003. - Held that:- Rule 135(2) of the KVAT Rules, 2005 clearly talks only about goods in the stock which clearly refers to the goods dealt by the assessee in the regular day-to-day business for which he is registered by the Department. These Rules do not intend to cover the goods purchased for construction or being material to be fixed in the building premises of the assessee like the Vitrified Tiles in the present case. In the present case, the Tiles purchased from the State of Gujarat on payment of Central Sales Tax and fixed in the floor of the Restaurant in question, cannot be said to be "goods in stock" while they can definitely be said to be "goods" as such. The restriction against sale of such goods which were purchased from outside the State stands complied with in the present case, as it is not the case of the Revenue that the Vitrified Tiles purchased by the assessee from the State of Gujarat in this case, were sold in the course of his business. Therefore, the question of violation of condition as specified under Rule 135(2) of the KVAT Rules, 2005 does not arise in the present case. Demand set aside - Decided against the revenue with cost of ₹ 10,000/- to be paid by the respondent assessing authority to the assesse.
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