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2012 (7) TMI 871 - HC - VAT and Sales TaxSuo-motu exercise of revisional powers by CCT u/s 22A of the Karnataka Sales Tax Act, 1957 - Mode of availing the concession - Held that:- The requirement of sub-section (4) of section 8 of the CST Act in itself is for the purpose of claiming the benefit of the lower rate of tax as indicated in subsection (1) of section 8 of the CST Act - on a proper and harmonious reading of section 8(5) of the CST Act after the amendment and even after inserting of the reference to the requirement of section 8(4) of the CST Act by a dealer requirement in sub-section (4) of the CST Act is one which is confined and restricted to a situation covered by the provisions of sub-section (1) of section 8 of the CST Act and it cannot in any way affect or control the exemptions granted vis-a-vis tax liability and the rate of tax as indicated in section 8(2) of the CST Act, i.e., the amendment cannot have any bearing or effect in respect of exemptions granted to inter State sales turnover either the class of dealers with reference to the goods or otherwise who are not registered dealers and not Government - restriction brought about by the amendment cannot regulate or effect an exemption if has been granted or is to be given in respect of inter State sales turnover effected in favour of non-registered dealers and other Governments - this is the only proper way of understanding of the amendment as we find that sub-section (5) of section 8 of the CST Act is an enabling provision to grant exemptions in situations where it is a case of levy of tax under the CST Act. On a reading of the plenary legislation and the notification issued being only to effectuate that, there was no conflict in the view expressed by the division Bench earlier upholding the notification - this is the only possible way of giving full effect to the exemption provision u/s 8(5) of the CST Act and at the same time effectuating the restrictions imposed therein insofar as inter State sales turnover effected in favour of registered dealers and the Governments, are concerned, while the benefit of exemption is claimed – thus, the order of the revisional authority is set aside – Decided in favour of petitioner.
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