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2021 (8) TMI 433 - HC - VAT and Sales TaxAvailability of sales tax exemption - taxable turnover of the Petitioner - order of the ACST confirmed on the ground that the Petitioner did not produce sufficient documentary evidence to substantiate its contentions - HELD THAT:- The impugned orders of the ACST and the Appellate authority are unsustainable in law. In Vadilal Chemicals Ltd. [2005 (8) TMI 121 - SUPREME COURT], the Supreme Court disapproved of the sales tax authority in that case ignoring the certificate issued by the DIC. The Supreme Court took the view that it was not open to the sales tax authorities to cancel the eligibility certificate issued by the DIC and deprive the assessee of sales tax exemption. Indeed it is trite that it is the DIC which is the appropriate authority to determine whether a certain SSI unit needs to be granted eligibility from payment of sales tax in terms of the IPR 1989. The certificate so issued by the DIC cannot be brushed aside by the Sales Tax Department - In the present case, despite a clarification issue by the DIC that the Petitioner was eligible for the grant of exemption from payment of sales tax, notwithstanding the differing quantities of raw material consumption and finished product manufactured, there was no justification for the Sales tax Department to invoke Rule 80 of the OST Rules and issue the impugned SCN and the consequential fresh assessment order, which in turn was confirmed by the appellate authority. Petition disposed off.
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