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2021 (9) TMI 901 - HC - VAT and Sales TaxConcessional rate of Entry Tax - purchase of raw materials like Coal, Caustic Soda, HFO and LDO etc. - Rule 3(4) (b) as existed prior to 2nd amendment of OET Rules - Coal, Caustic Soda, HFO and LDO utilized by the Petitioner in its CPP units are all “raw material” for production of electricity as a finished good - requirement to disclose raw material in the registration certificate or not - HELD THAT:- The registration certificate issued to the NALCO did mention the items viz., Coal, Caustic Soda, HFO and LDO by an entry made with effect from 14th March, 1987. To say that the entry should have further mentioned that these were “raw materials” is, in the considered view of the Court, hyper technical. There appears to be no dispute between the parties that in fact those materials were used as raw materials by the Petitioner. In fact, in its original order dated 21st November 2011, the Tribunal accepted that these materials were in fact used as raw materials. The mere fact that the registration certificate does not mention them as raw materials cannot result in depriving the Petitioner of the concession to which it is statutorily entitled. In other words NALCO cannot be made to suffer for the failure of the authority concerned to mention in the registration certificate issued under the OST Act that the above items are “raw materials.” Whether under the facts and circumstances of the case, no Entry Tax is excisable on purchase of “raw material” such as Coal, Caustic Soda, HFO and LDO, upto 6th November 2000 in view of Rule 3(4) (b) as existed prior to 2nd amendment of OET Rules? - HELD THAT:- The position under the OET Rules after 6th November 2000 was that, in terms of Rule 3 (4) of the OET Rules, goods specified in Parts I and II of the Schedule to the OET Act when used as raw materials by a manufacturer on its first entry “in a local area other than that specified in clause (a) above shall not be exigible to tax.” Rule 3 (4) (a) envisages the entry of the goods in a local area notified as a municipality or municipal corporation or a notified area council, in which case the goods would be exigible to tax at 50 % of the rate to which they are exigible under Rules 3 (2) and 3 (4) of the OET Rules. However, if the entry is in a local area other than municipality, municipal corporation or notified area council then no tax would be leviable - It is held that for assessment year 1999-2000, no entry tax was leviable on the purchase by the Petitioner-NALCO of raw materials such as Coal, Caustic Soda, HFO and LDO up to 6th November, 2000 in view of Rule-3 (4) (b) as it existed prior to the second amendment to the OET Rules. Revision disposed off.
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