9911796707
TMI Blog2011 (1) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal has held that it is liable to tax at the rate of two per cent. The brief facts of the case are that the assessee has manufactured iron kamani from iron leaves purchased within the State of U. P. after paying the tax. Such kamani has been sold in the course of inter-State sales and on the turnover the assessee admitted the tax at the rate of two per cent. The claim of the assessee had been rejected by the assessing authority on the ground that under Notification No. 1626/XI/7 dated May 21, 1994 such kamani was liable to tax at the rate of two per cent on the condition that tax has been paid on raw material. Therefore, in view of the Explanation of section 8(2A) of the Central Act, kamani was not generally liable to tax under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act the declared commodity is liable to tax at the rate of four per cent, whether such turnover is covered under form C or not. Sri R. R. Agrawal, learned counsel for the assessee, has submitted that kamani was liable to tax at the rate of two per cent under Notification No. 1626 dated May 21, 1994, therefore, in view of section 8(2A) of the Central Act it is liable to tax at the rate of two per cent. He further submitted that under section 15(b) of the Central Act in case of sale of declared commodity the assessee is entitled for the reimbursement of the tax paid under the State law and since the assessee has paid tax at the rate of two per cent under the State Act, the assessee is entitled for the reimbursement of the tax. Having heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (b) of sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than four per cent, (whether called a tax or fee or by any other name), shall be nil, or as the case may be, shall be calculated at the lower rate. Explanation.-For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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