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2016 (12) TMI 65 - HC - VAT and Sales TaxPrinting of currency notes for Government of India - Business or not - petitioner, dealer or not - currency notes, goods or not - Held that: - Petitioner is only engaged in printing and selling of bank notes to the Reserve Bank of India, therefore, there is a sale transaction between petitioner and the Reserve Bank of India and after sale the said goods become Bank Note or currency and before such transaction it is merely goods under the definition of VAT Act, 2002 It is clear that the Union is not exempted from the levy of indirect tax under Article 285 of the Constitution. The applicability of protection under Article 285 of the Constitution of India is also liable to be rejected and the petitioner would not be entitled for the benefit as held by the Apex Court in the case of Karya Palak Engineer, CPWD, Bikaner vs. Rajasthan Taxation Board, Ajmer and others [2004 (8) TMI 114 - SUPREME COURT OF INDIA], where it was held that Union is not exempted from the levy of indirect tax under Article 285 of the Constitution.The levy under the local Act being a single point tax and the appellant having suffered the same when it purchased the material in question and same material cannot be subjected to another levy on its transfer to the contractor. This argument requires consideration of factual matrix of the case concerned, whether the levy in question is a single point tax and material purchased by the appellants had suffered the levy at the point of purchase by appellants or not are matters to be decided by the authorities concerned and if the same is not already decided and has not become final, it will be open to the appellants to urge this question before the appropriate authorities. Petition dismissed - decided in favor of Department.
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