TMI Blog2011 (3) TMI 1542X X X X Extracts X X X X X X X X Extracts X X X X ..... g for such deduction is ex facie incorrect and cannot be sustained. Therefore, the said contention of the revision petitioner is upheld - matter remanded back to the assessing authority to give deduction to the value of the raw materials, component parts and inputs which are used in the manufacture of goods on which goods entry tax is exempted under this Act and deduct a sum from the value of manufactured goods and reassess the tax liability and if any amount has been paid in excess of amounts due under section 5C, to refund the same to the assessee in accordance with law. To that extent the revision petition is partly allowed. The assessing authority is directed to reassess the tax liability. - Civil Revision Petition No. 180 of 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the said scheme of composition up to the period 1993-94. However, section 5 came to be amended by Amendment Act 14 of 1994 with effect from April 1, 1994. The assessee has been paying tax at the compounded rates for the period from 1992-93 in accordance with section 5C read with rule 8B of the Act. The assessing authority concluded the assessment under section 5(4) after considering the reply to the show-cause notice determining the total turnover and the taxable turnover. The said order was duly served on the assessee on January 18, 1997. The assessee filed a letter on February 1, 1997 stating that turnover relating to purchases of raw materials and components for the period was not considered for exemption. During the said period raw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in section 3 but subject to the conditions laid down in this section and such other conditions and such circumstances as may be prescribed, any dealer liable to pay tax under this Act, may at his option, instead of paying tax under the said section pay such tax by way of composition amount at the following rates, namely: (i) In the case of a dealer who brings or causes to be brought into a local area any goods liable to tax under this Act, whether on his own account or on account of his principal or any other person, or who takes delivery or is entitled to take delivery of such goods on its entry into a local area for sale therein, the tax payable by such dealer shall be calculated at the rates notified under section 3 on the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all and section 5C is not attracted to goods which are raw materials received and duly brought into the local area for the purpose of selling either as such or by conversion into a final product. Therefore we do not see any substance in the first contention urged by the learned counsel for the revision petitioner. In so far as the second contention is concerned Explanation II to subclause (ii) of section 5C reads as under: For the purposes of levy of tax under this sub-section, (i) an amount equal to forty per cent of the 'value' as determined under Explanation I shall be deducted from such value; (ii) any amount paid as consideration towards the purchase of, (a) raw materials, component parts and inputs which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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