9911796707
TMI Blog2011 (7) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... to M/s. Toyota Kirloskar Motors Private Ltd., Bidadi (hereinafter called as, "M/s. TKML", for short). The said components are used by TKML in the manufacture of motor vehicles. Accordingly, they gave declaration in the prescribed form. On the basis of the said declaration, the assessee claimed exemption from payment of sales tax by notification dated January 1, 1998, whereby the Government of Karnataka exempted the tax payable by the dealer under section 5 of the Act in respect of sale of goods to M/s. TKMPL for their use as raw materials/ components/consumables/the packing materials, for a period of five years for each phase, subject to the condition of production of declaration obtained from M/s. TKMPL in the forms specified in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is liable to pay turnover tax at three per cent. Aggrieved by the said order the assessee is before this court in revision. The learned counsel for the assessee submitted that section 5 of the Act is not a charging section at all and therefore, the notification dated January 1, 1998 has to be construed as applicable to the liability to tax under section 5A of the Act. If so construed, the notification is applicable to the persons who have paid tax under section 5A and if section 5A is applicable to the assessee, he is entitled to benefit of reduction in turnover tax. Consequently, it was contended that the ground on which the rectification order came to be passed, was not the subject-matter of the original appeal. Therefore, the scope of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax under section 5A. If no payment is made under section 5A, the subsequent notification has no application. In the instant case, the assessee has not made any payment as he claimed exemption under the notification issued granting exemption from payment of tax under section 5, the subsequent notification has no reference to either to the said notification or payment of tax under section 5. Therefore, he is liable to pay turnover tax only at three per cent. This aspect has been completely missed by the KAT while deciding the appeal on the merits and it has directed itself in proceeding on the assumption when the assessee was not under obligation to produce form 37 to claim the benefit of reduction of turnover tax to one per cent, it erron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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