TMI Blog2001 (8) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the assessment years 1990-91, 1992-93 and 1991-92 respectively in their order. They raise a common question as regards the application of the Government order in S.R.O. No. 499/90, in that as to whether the assessee is entitled to get exemption from purchase tax under section 5-A of S.R.O. No. 499/90 with reference to the purchase of copper scrap from unregistered dealer used in the process of manufacture of copper sulphate by the assessee. This exemption is denied, although there is no dispute as regards the text of the said S.R.O. and the language in regard thereto. 2.. The reason for denial is difficult to appreciate. The Tribunal has observed that what has been given exemption under this notification is the levy and collection of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on relates to the tax payable under the Act and certainly not as has been considered by the authorities that it relates to tax payable under section 5 and not under section 5-A. This is completely erroneous on the plain language of the notification. 5.. Secondly, reading of section 5 of the Act also makes it clear that every dealer, whose total turnover for a year is not less than the stated limit and every casual trader or agent of a non-resident dealer shall pay tax on his taxable turnover for that year. Provisions of section 5-A of the Act speak of levy of purchase tax to be payable by every dealer who, in the course of his business, purchases from a registered dealer or from any other person any goods, the sale or purchase of which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... small-scale industries and also to extend the same to small-scale industrial units already availing of the concession under the existing scheme provided that the period of exemption has not expired and also subject to the condition that the exemption already availed of will be deducted from the amount of tax concession worked out under this scheme. Existing small-scale industrial units which undertake diversification/expansion/ modernisation were offered tax concessions on the above basis for a maximum period of three years from the date of completion of such efforts and subject to the maximum limit fixed to 100 per cent of the value of the new plant and machinery used in such diversification/ expansion/modernisation". (underlining supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fects diversification/expansion/modernisation, on the turnover of sale of goods manufactured and sold by such units and on the turnover of goods taxable at the point of last purchase in the State and used by such units in the manufacture of goods intended for sale within the State or inter-State................". 2.. The Kerala Sales Tax Appellate Tribunal opined that the notification "contemplates exemption only on the turnover of goods taxable at the point of last purchase in the State and used by such units in the manufacture of goods within the State. It is an undisputed fact that the copper scrap is not goods taxable at the point of last purchase in the State.............. What has been given exemption in S.R.O. 499/90* is the turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on given by the notification. The argument is misplaced. The notification applies to goods of the description that are taxable at the point of last purchase in the State under the Act. The particular copper scrap is not goods of a description which are taxable under the Act at the point of last purchase in the State. The particular copper scrap is, therefore, not entitled to the benefit of the exemption under the notification. The question is not whether the particular copper scrap which the respondent purchased became, by reason of circumstances, taxable at the point of last purchase in the State but whether copper scrap as a description of goods is taxable under the Act at the point of last purchase in the State. Since it is not, the bene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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