9911796707
TMI Blog2007 (10) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... ), West Zone, Mangalore in Case No. DCCT/INT/INS.96/2003-04. The petitioner is a company incorporated under the provisions of the Companies Act, 1956 engaged in the business of printing of high security documents like cheques, lottery tickets. On the orders placed by the Director of Small Savings and State Lotteries, the petitioner has got printed and supplied the lottery tickets, which attracts sales tax. The Government of Karnataka issued a Notification bearing No. FD. 35 CSL 96(9) dated March 30, 1996 reducing the tax payable on the sale of goods to four per cent other than timber, petrol, diesel and other petroleum products to the departments of Government of India or State of Karnataka or Government of any other State located ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eries, which is employed in the activity of conducting the lottery amounts to use of the lottery tickets by the department as contemplated under the notification dated March 30, 1996 and whether the words 'for use by them' would restrict the personal use of the office?" We have heard the learned counsel for the parties. The learned counsel for the petitioner contends that when the authorised person has issued a declaration in terms of the notification dated March 30, 1996 stating that the goods were purchased by the department from the assessee for the official use, the intelligence authority or the appellate authority could not have held that the words "used by them " in the notification would be restricted to the personal use of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Karnataka or other departments as shown in the notification only for office use and not for a commercial venture. It is not in dispute that the lottery tickets were got printed by the petitioner at the instance of the lottery division of the State of Karnataka and not for the personal use of the said department. Therefore, it cannot be stated that it is for the official use of the department and not to make profit. Normally, the Government would not conduct any business to make profit from the goods purchased for the benefit of the department. The Government has reduced the tax payable under section 5 of the KST Act at four per cent and has granted an exemption in the notification. The said reduction is not applicable in case of timber, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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