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2022 (5) TMI 1196 - HC - VAT and Sales TaxExemption from Sales Tax - Whether the carpets dealt with by the Petitioner on which 1st point sales tax has been paid to the selling dealer, are exempted from sales tax at the last point of sale? - HELD THAT:- The taxing provision in the OST Act is Section 5 (1) which prescribes the rate of tax. The point of levy of tax on different goods are in accordance with Section 8 of the OST Act. Therefore, the reference to entry 23 of the rate of tax for determining amenability to tax is not relevant. The schedule of taxable goods under List- ‘C’ not only covers the goods notified as 1st point tax paid items but all other residual items unless the goods were notified as tax free - There is merit in the contention of the Petitioner that pile carpets are also known as carpets. In common parlance, pile carpets are also understood as carpets. The carpets entered into the books of account of the Petitioner are in fact “pile carpets”. In the present case, the Petitioner having already paid to the seller, the 1st point sales tax, should not be asked to pay again sales tax on the last point of sale of the same commodity. Consequently, the question framed by the Court is answered in favour of the Assessee and against the Department by holding that carpets on which 1st point sales tax has already been paid by the Petitioner to the selling dealer would not again be amenable to sales tax at the last point of sale - the corresponding orders of the ACST and STO are hereby set aside. The revision petitions are allowed.
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