9911796707
TMI Blog2007 (6) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... from payment of Kerala Value Added Tax Act, 2003 (for short, "the KVAT Act"), they are entitled to total exemption from payment of tax under the Central Sales Tax Act, 1956 (for short, "the CST Act") in view of section 8(2)(c) of the Act. Therefore they are before this court for the following reliefs: (a) to declare that the 21 items mentioned in entry 55 of the First Schedule to the KVAT Act are not liable to tax under the CST Act in view of section 8(2)(c) of the CST Act. (b) to declare that the instructions issued by the Commissioner of Commercial Taxes in Circular No. 17/2006 dated April 19, 2006 is bad in law, and (c) for a direction to respondent Nos. 1 to 3 not to detain the vehicles of the petitioner under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le shall be exempted from tax." "Entry 55 of First Schedule.--Products notified by the Khadi and Village Industries Commission, at the point of sale by the manufacturing units approved by the Kerala Khadi and Village Industries Board. (1) Fireworks and agarbathies (2) Handmade soaps (3) Tanned hides and skins and ancillary industries connected with the same (4) Handmade leather goods (5) Handmade paper (6) Cane gur and khandasari (7) Manure and methane gas from cowdung and other waste products (8) Lime products (9) Shellac (10) Vegetable and fruit products (11) Bamboo and cane goods (12) Products of blacksmithy other than furniture (13) Carpentry other than manufacture of furniture (14) Fibre products other than coi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d lastly the manufacturing unit which are exempt from payment of tax. It specifically says that exemption is at sale point by those manufacturing units which are approved by the Kerala Khadi and Village Industries Board. The entry enumerates 21 items/commodities which are eligible for such exemption, one such item is carpentry other than manufacture of furniture. The specific case of the petitioner and its learned counsel is that their business activities would fall under sub-clause (13) of entry 55 of the First Schedule to the Act and according to them what the said entry provides is general exemption from payment of tax under the Act and therefore, sales of any goods which are exempt from tax generally under the State law attract the nil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circular instruction issued by the Commissioner requires to be annulled by this court. Sub-section (5) of section 8 of the CST Act speaks of granting of exemption by the State Government by issuing an appropriate notification. This has nothing to do with the interpretation of the transaction. If, for any reason, the State is interested in granting any exemption to goods or to a transaction, the same can be done by issuing an appropriate notification as provided under sub-section (5) of section 8 of the CST Act. Section 9 of the CST Act provides for levy and collection of tax and penalties. The Central Government has entrusted the powers with the State authorities to assess, reassess tax, levy penalties, deal with the appeals and other re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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