TMI Blog2010 (11) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... tal amount to be set off against exemption granted under certificate should be the tax levied on rice without granting rebate of tax on paddy. The assessing officer is directed to verify the exemption granted for all the years based on the certificate and the scheme suggested above will be applied only if the assessee continued business till full exemption available under certificate is set off as indicated above. Sales tax revision is allowed to the extent indi cated above. - ST. Rev. No. 104 of 2010 - - - Dated:- 15-11-2010 - RAMACHANDRAN NAIR C.N. AND RAY B.P., JJ . The judgment of the court was delivered by C.N. RAMACHANDRAN NAM J. The question raised is whether the Tribunal was justified in cancelling levy of tax under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment issued to the respondent is to levy and demand tax on the purchase turnover of paddy and then reduce the same while levying tax on the sale of rice. Since the respondent enjoyed exemption the net amount found payable as tax for the sale of rice is set off from the exemption amount covered by the certificate issued to the respondent. Even though the first appellate authority dismissed the appeal, the Tribunal following the above decision of the Supreme Court cancelled the levy of tax under section 5A on paddy against which the State has filed this revision. Before us the Government Pleader submitted that Peekay Re-rolling Mills (P) Ltd.'s case [2007] 6 VST 541 (SC) decided by the Supreme Court is now referred to Larger B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alers, etc., who are not liable to tax as dealers under the Act. However, unless there is proof of levy of tax at the hands of selling dealer, section 5A is applicable because the respondent admittedly purchased paddy from unregistered dealers and manufactured rice out of the same. In fact, exemption is obtained by respondent under SRO No. 1729 of 1993 on the ground that it is engaged in manufacture of rice from paddy. So much so, tax is to be levied on the purchase of paddy under section 5A as all the conditions of section 5A are satisfied. We have in a detailed judgment in Empees Modern Rice Mills v. State of Kerala [2011] 43 VST 195 (Ker); [2009] 4 KLT 433 considered this issue and declared that levy of tax on paddy on an industrial unit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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