TMI Blog2008 (2) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... bove exemption notifications, the matter needs to be remitted to the AO for fresh decision in accordance with law. And if the assessee satisfies the terms and conditions mentioned in the exemption notification, the assessee would be entitled to the benefit thereunder notwithstanding the circular issued by the Board/Commissioner. This is on the principle mentioned hereinabove that such circular does not bind the assessee if the assessee demonstrates that it fulfils the conditions mentioned. - Civil Appeal Nos. 5700-5712 of 2007, 5699, 5713-5726 of 2007 - - - Dated:- 8-2-2008 - KAPADIA S.H. AND SUDERSHAN REDDY B. JJ. G. Prakash and Ms. Beena Prakash, Advocates for the respondents. R.F. Nariman, Senior Advocate (E.M.S. Anam, Fazli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n S.R.O. No. 1003/91, the conditions for availing exemptions were that rubber should be used for manufacture of "goods" and that tax was leviable on the products manufactured by such rubber. The assessing authority did not allow the benefit of exemption to the assessee under the above Government notifications on the ground that centrifuged latex and field latex were one and the same commodity. It may be noted that in the earlier case of Kurian Abraham Pvt. Ltd. (Civil Appeal Nos. 7965 to 7966 of 2004) the department had taken the view that field latex and centrifuged latex were two different and distinct commodities whereas, in the present case, the department has taken the view that they were one and the same commodity. Therefore, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Tribunal that they were entitled to concessional rate of three per cent, which was rejected by the Tribunal on the ground that field latex and centrifuged latex were two separate and distinct commodities by placing reliance on the judgment of the Kerala High Court in the case of Padinjarekara Agencies Ltd. v. Assistant Commissioner reported in [1996] 2 KLT 641. Aggrieved by the decision of the Tribunal, the matter was carried in revision to the High Court being Sales Tax Revision Nos. 177-189 of 2007. The High Court took the view that it had limited revisional powers under section 41 of the KGST Act. By the impugned judgment, it was held that there was no error committed by the Appellate Tribunal in its judgment nor had the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted in a classification dispute need not be the same as interpretation of exemption notification under the same Act. Every exemption notification has to be read on its own terms. One cannot confuse the terms used in the notification by comparing the language of the notification with the language of the taxing statute. In the present case, the Government Notification S. R. O. No. 1003/ 91 (preceded by Government Notification S. R. O. No. 585/80) uses the word "goods". Because of the use of the word "goods" the first appellate authority came to the conclusion that centrifuged latex can be considered as an item of "goods" for the purposes of S. R. O. No. 1003/91. According to the first appellate authority, there was no difference of opinion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cession on the basis of various exemption notification(s) issued by the Government from time to time. We express no opinion on the interpretation of those notification(s). Suffice it to state that, the assessee was not bound by the orders/directions issued by the Commissioner to the AO. Therefore, on the scope and effect of each of the above exemption notifications, the matter needs to be remitted to the AO for fresh decision in accordance with law. In other words, if the assessee satisfies the terms and conditions mentioned in the exemption notification, the assessee would be entitled to the benefit thereunder notwithstanding the circular issued by the Board/Commissioner. This is on the principle mentioned hereinabove that such circular ..... X X X X Extracts X X X X X X X X Extracts X X X X
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