TMI Blog2010 (3) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. But, it is not the case of the Revenue that in excess of the relaxation permitted by the Government of India to the assessee to sell its products in the domestic tariff area, the assessee has sold the goods manufactured by it. Since there is no violation, we are of the view that the orders passed by the Karnataka Appellate Tribunal as well as by the Joint Commissioner of Commercial Taxes and so also by the Deputy Commissioner of Commercial Taxes are required to be set aside, answering the question of law in favour of the assessee and against the Revenue. Accordingly, this revision petition is allowed. - 45 of 2006 - - - Dated:- 4-3-2010 - MANJUNATH K.L. AND NAGARATHNA B.V. , JJ. ORDER:- The order of the court was made by K.L. MANJUNATH J. This revision petition is filed by the assessee, challenging the legality and correctness of the order passed by the Joint Commissioner of Commercial Taxes (Appeals), Bangalore, dated April 12, 2004, which has been affirmed by the Karnataka Appellate Tribunal, Bangalore on March 7, 2006, in S.T.A. No. 2407 of 2004. The dispute is in regard to the assessment year 1997-98. Though the revision petition was admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the manufacture of goods which are physically exported out of the country and not applicable to extent of goods sold in the DTA? In view of the request, we have to consider question No. 1 only. The facts leading to this case are as hereunder: The petitioner-assessee is a 100 per cent export oriented unit (EOU) set up in the year 1995. Pursuant to the notification issued by the Government under No. FD 32 CSL 96 (V) dated November 15, 1996, it purchased certain raw materials to be used for the manufacture of its products from a registered dealer and tax was not paid on the purchase made by it from the registered dealer since it is a 100 per cent EOU in the manufacture of goods for exports. The Revenue did not grant the exemption on the ground that there was violation of the terms and conditions of the aforesaid notification inasmuch as the petitioner-assessee had sold a portion of the finished product in domestic market, without exporting all the goods manufactured by it as required under the notification, contending that clauses (i) to (iii) are violated by the petitioner-assessee, and the exemption granted to it was withdrawn. Being aggrieved by the same, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export; (ii) time-limit for use of such goods in the manufacture of goods for export shall be before the expiry of the accounting year immediately succeeding year in which the goods are purchased; (iii) the 100 per cent export oriented unit shall export its entire production of goods subject to relaxation permitted by Government of India from time to time; (iv) Where for any reason, the 100 per cent export oriented unit fails to comply with the condition (iii) above, it shall forthwith cease to be eligible for the benefit of this notification; (v) Where for any reason the restriction or condition stipulated under (i), (ii) and (iii) above is contravened or not complied with, either wholly or partly, the provisions of clauses (a) and (b) of subsection (5) of section 8A of the said Act shall apply and the 100 per cent export oriented unit shall be liable to pay an amount equal to the tax payable at the rates prescribed under the said Act, on purchases of raw materials, components, packing materials, intermediate and semi-finished goods and sub-assemblies in respect of which such contravention or non-compliance has taken place. The amount so payable shall be deemed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt oriented unit. (ii) The said certificate shall be produced, in proof of its being valid, in each assessment year, within 60 days of commencement of the assessment year. This notification shall be valid up to (March 14, 2001). It is not in dispute that the raw materials purchased by the assessee is to put to use by it in respect of the products manufactured for the purpose of export since the assessee is a 100 per cent EOU. The learned Government advocate does not dispute this fact. There is no violation of clause (ii) of the notification since the material purchased by the assessee has been utilized within the time stipulated in accordance with clause (ii). Therefore, what is required is, whether there is any violation of clause (iii) and whether clause (iii) of the notification has to be read in isolation with the clauses (i) and (ii) or clauses (i) to (iii) are to be read together in order to consider the case of both parties. The learned Government Advocate also does not dispute that pursuant to the relaxation granted by the Government of India, portion of the materials manufactured by the assessee for the purpose of export has been sold in the domestic tariff ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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