TMI Blog2010 (8) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner, Commercial Tax, Indore, dismissing the revision petition of the petitioner by holding that the benefit of the exemption notification dated May 5, 1997, is not available for levy of tax under section 9B of the Madhya Pradesh Commercial Tax Act, 1994. The present matter relates to the assessment period April 1, 1997 to March 31, 1998. The petitioner is registered dealer engaged in the business of purchase and sale of tea including loose tea . By the assessment order dated April 24, 2001 the assessing authority had levied tax, at the rate of 10 per cent under section 9B of the Act and rejected the petitioner's objection that in terms of the exemption notification issued under section 9 of the Act, the reduced rate of tax should be charged. The revision preferred by the petitioner against this order was rejected by the revisional authority, by impugned order dated October 11, 2002. The learned counsel for the petitioner submitted that the charging section is section 9 and once by the notifications dated May 9, 1997 and May 14, 1997, the rate of tax was reduced then for the levy of tax under section 9B also the reduced rate of tax will be applicable. He submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (1) shall continue to be so liable until the expiry of two consecutive years during each of which his turnover has not exceeded the limits specified in sub-section (1) and on the expiry of such period his liability to pay tax shall cease. Section 9B carves out a separate class of dealers who are liable to pay tax under section 9 and whose turnover exceeds rupees one crore. This separate class of dealer is liable to pay tax on resale of goods at the rate specified in column (3) of Schedule II. Section 9B starts with non obstante clause which indicates that section 9B is not a part and parcel of section 9, but is a separate section applicable to the separate class of dealers covered by section 9B. The State can provide different rate of tax for different class of dealers depending upon their turnover and the rate of tax on the sale of goods can vary with the turnover of the dealer and, therefore, it is well within the competence of the State to reduce the rate of tax applicable to the particular class of dealers without altering the rate of tax payable by another class of dealers. The above view is supported by the Division Bench of this court in the matter of Chhat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant extract of notification dated May 9, 1997 is reproduced below: 20 Notification No. A-3-35-97-ST-V(23), dated May 9, 1997 Loose tea and papers of all kinds In exercise of the powers conferred by section 17 of the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995), the State Government hereby exempts the class of goods specified in column (2) of the Schedule below from payment of tax under the said Adhiniyam, for the period from 1st April, 1997 to 31st March, 2000 to the extent specified in column (3) of the said Schedule: SCHEDULE S. No. Class of goods Extent of exemption (1) (2) (3) 1. Loose tea Explanation. 'loose tea' means in bulk in packages of 20 kilograms and above, i.e., not in smaller packets within the package of 20 kilograms or more Partly so as to reduce the rate of tax under section 9 to four per cent. By the subsequent notification dated May 14, 1997, issued under section 17 of the Act, the rate of tax on tea under section 9 was reduced to eight per cent. The relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is settled law that to avail of the benefit of a notification a party must comply with all the conditions of the notification. Further, a notification has to be interpreted in terms of its language.' 41. The principle that in the event of a provision of a fiscal statute is obscure such construction which favours the assessee may be adopted, but it would have no application to construction of an exemption notification, as in such a case it is for the assessee to show that he comes within the purview of exemption. (See Novopan India Ltd. v. Collector of Central Excise and Customs [1994] Supp (3) SCC 606). 42.. In State Level Committee v. Morgardshammar India Ltd. reported in [1996] 101 STC 1 (SC); [1996] 1 SCC 108, referring to a large number of decisions, this court held (page 9 in 101 STC): '. . . It must be remembered that no unit has a right to claim exemption from tax as a matter of right. His right is only insofar as it is provided by section 4A. While providing for exemption, the Legislature has hedged it with certain conditions. It is not open to the court to ignore those conditions and extend the exemption. . .' The Supreme Court in the matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cations dated May 9, 1997 and May 14, 1997, while reducing the rate of tax on tea and loose tea , expressly state so as to reduce the rate of tax under section 9 . The exemption notifications do not mention that the reduction of tax was under section 9B also. Section 16 of the Act gives power to the State Government to amend Schedule II but this power was not exercised by the State and the rate of tax prescribed in column (3) of Schedule II of the Act was not reduced. Under section 9B, the tax is leviable, at the same rate, as prescribed in column (3) of Schedule II. Since the column (3) of Schedule II was not amended and by the exemption notifications in consideration the rate of tax under section 9B was not reduced, the rate of tax, as prescribed in column (3) of Schedule II continued to apply for the purposes of levy of tax under section 9B of the Act. The object and purpose of these notifications appear to be to give tax exemption to the class of dealers covered by section 9 only and not to the class of dealers covered by section 9B. The exemption notifications in question expressly provide for reduction of tax under section 9 of the Act and they do not provide for reducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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