2009 (6) TMI 964

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..... iled by the assessee is whether the Tribunal was justified in confirming disallowance of exemption claimed on the purchase tax payable under section 5A of the Kerala General Sales Tax Act, 1963, on paddy under SRO No. 1729 of 1993. The petitioner started a rice mill in 1998 and being a new small-scale industrial unit, the petitioner is entitled to sales tax exemption on the rice and other products .....

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..... g officer demanded purchase tax under section 5A for the reason that paddy is consumed in the manufacture of rice. The petitioner's claim for exemption under SRO No. 1729 of 1993 on the purchase turnover of paddy was rejected for the reason that paddy is not covered by the second limb of the notification which entitles a small-scale industrial unit for exemption only on purchase turnover of go .....

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..... le to the KGST Act. If the petitioner's contention is accepted, then every commodity when assessed under section 5A will become taxable at the point of last purchase and so much so, benefit of notification will be available. This is obviously not intended by the Government while issuing the notification because applying this logic, every commodity when purchased and consumed in manufacture by .....

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