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2012 (9) TMI 911 - HC - VAT and Sales TaxLevy of tax on sale of goods in course of inter-state trade and commerce - Claim of concessional rate under the Notification No. S.O. 27 dated January 30, 1993 rejected – Whether the notification has exempted sales covered under sub-section (1) or under sub-section (2) or both - Held that:- The petitioner's contented that the sale in question was the sale in the course of inter-State trade or commerce, of the articles which have been notified in the notification dated January 30, 1993 - Notification No. S.O. 40, dated February 26, 1992 nowhere has restricted itself to either of the provisions under sub-section (1) or (2) of section 8 and this notification in an unambiguous and clear language declared that the reduced rate of tax will be applicable to the sales in the course of inter-State trade or commerce of the articles mentioned in the notification - the State also could not dispute this position and fairly admitted that this notification applies to sub-sections (1) and (2) both. The Tribunal, instead of reading the notification as such and finding out what is the effect of the notification, proceeded astray and tried to find out what the notification should have contained - when the statute, rule or any notification is unambiguously clear in its language, then there was no need to look into other aspect as to how the notification should have been framed – in State of Rajasthan and Another Versus Sarvotam Vegetables Products (and other appeals) [1996 (4) TMI 405 - SUPREME COURT OF INDIA] it has been held that Sub-section (5) of section 8 confers the power of exemption upon the State Government - As is well-known, almost every taxing enactment contains such a provision - The exemption under section 8(5) can be granted either with reference to dealers or class of dealers or with reference to goods or classes of goods. The exemption can be total or partial - It can also be subject to such condition as may be prescribed in that behalf - there is no condition in the notification and there could not have been any condition of producing form C or D for sales covered under sub-section (2) - petitioner's sale is not falling under sub-section (1) of section 8 and is falling under sub-section (2) of section 8 and since the notification applies to the sales under sub-section (2) of section 8 fully, then in that situation the petitioner's sale/transaction is fully covered by the notification dated January 30, 1993 and the petitioner was liable to pay tax as provided by the notification and was liable to pay tax at four per cent only and not as levied by the impugned order – thus, the order of the ACIT, In-charge, Jamshedpur Division is set aside – Decided in favour of petitioner.
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