TMI Blog2000 (1) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... is answered in favour of the assessee. The assessee has rightly pointed out that the certificate of registration valid from November 12, 1981, until cancelled was secured by the respondent though on the date of registration it was not liable to pay tax under the Central Act. Liability to pay tax arose on commencement of production and business on January 10, 1984, whereafter exemption from payment of sales tax was claimed under the notification. - Civil Appeal No. 2954 of 1997, - - - Dated:- 18-1-2000 - BHARUCHA S.P., LAHOTI R.C. AND SANTOSH HEGDE N. JJ. A.K. Chitale, Senior Advocate (Niraj Sharma and Krishnanand Pandey, Advocates, with him), for the respondent. S.K. Angnihotri, Advocate, for the appellant. ------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) (3) .......... 2. Dealers who- (a) are registered dealer under the Madhya Pradesh General Sales Tax Act, 1958 (No. 2 of 1959) and under Central Sales Tax Act, 1956 (No. 74 of 1956). (a) in the case of an industry located in a district specified in category 'A' of Part II of the annexure, up to the date on which period of 3 years, beginning from the date of commencement of production, expires. The dealer specified in column (1) Shall continue to furnish the prescribed returns under the Central Sales Tax Act, 1956 (No. 74 of 1956), and shall produce before the Assessing authority at the time of his assessment a certificate issued by the Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of sales tax. It was also certified that the unit being located in district Bilaspur-category Backward A was eligible for exemption for the period up to January 9, 1987. 3.. The Assistant Commissioner of Sales Tax formed an opinion that for the purpose of claiming benefit of the exemption notification a dealer registered under the State Act has also to be registered under sub-section (1) of section 7 of the Central Sales Tax Act but the respondent was registered under sub-section (2) and not sub-section (1) of section 7 of the Central Sales Tax Act and therefore was not entitled to the benefit of the exemption notification dated June 29, 1982. The Appellate Deputy Commissioner agreed with the Assistant Commissioner. In an appeal pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate by entering into the question of the respondent s registration whether it was under sub-section (1) or (2) of section 7 of the Central Sales Tax Act. Feeling aggrieved the Revenue has come up in appeal before this Court. 6.. It was submitted by the learned counsel for the appellant that on a full reading of the notification and placing a reasonable construction thereon the expression ........ registered under the Central Sales Tax Act, 1956 , as employed in the first column of the notification should be understood as meaning the registration under sub-section (1) of section 7 of the Central Sales Tax Act; registration under sub-section (2) of section 7 of the Central Sales Tax Act is not covered by the expression and is of no relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation under sub-section (1) of section 7. Such dealers as have a place of business in a State and are not liable to pay tax under the Central Act may still have themselves registered under sub-section (2) of section 7 of the Central Sales Tax Act if (i) they are dealers liable to pay tax under the sales tax law of the appropriate State (notwithstanding the fact that the sales or purchases made by them are exempt from tax or a refund or a rebate of tax is admissible in respect thereof), or (ii) there is no State legislation attracting liability to pay tax on such dealers. Such a prayer for registration shall be made to the same authority who grants registration under sub-section (1). Registration under sub-section (1) is compulsory; regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has rightly pointed out that the certificate of registration valid from November 12, 1981, until cancelled was secured by the respondent though on the date of registration it was not liable to pay tax under the Central Act. Liability to pay tax arose on commencement of production and business on January 10, 1984, whereafter exemption from payment of sales tax was claimed under the notification. Without regard to the fact whether the assessing authority was entitled to go behind the certificate of eligibility issued by the Directorate of Industries, the entitlement of the respondent for ex- emption from payment of tax under the notification was clearly made out as the requirements of column (1) of the notification were also satisfie ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
