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2021 (4) TMI 1037 - HC - VAT and Sales TaxLevy of sales tax on the entire sales turnover - eligibility of tax deduction as per Rule-3 of the KST Rules - HELD THAT:- It is evident that the dealer is supposed to pay net tax to the Government on its sales and net tax for the purposes of this Act, means the difference between the 'output tax and input tax', which is the amount of net tax. Input tax is levied only in case of sale of taxable goods through a dealer - In the instant case, the KSBCL is exempt from tax and therefore, the petitioner does not pay any tax on the purchases made by it and there is not Input tax in the hands of the petitioner. Thus, the petitioner has no Input tax in its hands. The petitioner therefore, cannot be permitted to contend that it is liable to pay tax only on value addition and not on the entire amount. The substantial questions of law are answered against the petitioner and in favour of the respondent - Petition dismissed.
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