9911796707
TMI Blog1996 (1) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner is a dealer in footwear and has effected inter-State sales of the same, and contends that under entry No. 46 in the Fifth Schedule to the Karnataka Sales Tax Act, footwear costing less than Rs. 30 per pair is exempted from tax and that exemption is general in character and not subject to any conditions or with reference to any circumstance. The State contends that the term "exemption from tax generally" in section 8(2-A) of the Central Sales Tax Act, does not cover the goods which are exempted only on specified conditions or any specified circumstances. It is urged that the exemption of footwear under entry No. 46 of the Fifth Schedule at the relevant period was an exemption only with reference to the conditions that the cost of foo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rit petition. That is how this appeal is filed. 2.. The arguments advanced before the learned single Judge are reiterated before us, to which, we have already made reference. 3.. The question that falls for our consideration is that whether the goods sold by the appellant in this case are exempted from tax generally under the Karnataka Sales Tax Act. The test applicable to verify whether the exemption granted is general in nature or arose in specific circumstance or subject to conditions, could be illustrated with reference to the decision of Commissioner of Sales Tax v. Pine Chemicals Ltd. [1995] 96 STC 355, wherein the Supreme Court has stated that in ascertaining the true meaning of section 8(2-A) of the Act, providing for exemption of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with reference to the transactions and not with reference to the goods. If it is subject of exemption, qua the dealer or qua the manufactured goods then exemption would not be available, but if it is with reference to the goods, such benefit would be available. 4.. The intention of the Government in exempting goods by bringing the same under the Fifth Schedule to the Karnataka Sales Tax Act is to exempt cheap variety of footwear and the same may be identified with reference to its cost and in this case, it is less than Rs. 30. The Legislature classified the goods in two categories-one costing more than Rs. 30 and the other less than Rs. 30. Thus, if the Legislature makes classification into two categories of goods, one category attracts ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified into two categories, and the description is only with reference to the goods, we do not think that we can say section 8(2-A) of the Act is not attracted. 5.. It is brought to our notice that the department itself took inconsistent views in so far as this aspect of the matter is concerned. On one occasion, the department has issued notice initiating penalty proceedings, when tax had been collected under the Central Sales Tax Act in respect of identical goods, stating that such goods are exempted from tax, but subsequently, the department revised this rule, that way, the department is not sure of the legal position of the matter. 6.. In the result, we allow this appeal and set aside the order made by the learned single Judge, al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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