TMI Blog2015 (9) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... ion from payment of tax with certain capital expenditure for period of nine years – It was held in Yamaha Motor Excorts Limited Versus State of UP [2010 (1) TMI 1060 - ALLAHABAD HIGH COURT] that even if dealer did not submit C form, then in that circumstances also he was eligible to get benefit of set off in accordance with eligibility certificate – Exemption certificate issued to petitioner grants immunity from payment of tax within capex limit for certain period – Such facility cannot be withdrawn – Impugned order hereby quashed – Decided in favour of Assesse. - Appeal Nos. 9-10/CST/2012 - - - Dated:- 6-5-2014 - DR. ARIJIT PASAYAT, J. (Chairman) A. K. Nagpal, IOCL, Rakesh Takkar, Senior Manager (Fin.) Delhi IOCL, Kashmiri Lal Goya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CST Act, the petitioner was not eligible to get exemption from payment of tax. The revisional authority did not agree with the reply of the petitioner and imposed a tax liability. Against the aforesaid order, the petitioner filed a writ petition before this court. It was registered as W. P. No. 339 of 2012 and the same was disposed of vide order dated April 3, 2013 (Marvel Vinyls Ltd. v. State of M. P. [2013] 63 VST 360 (MP)) with the following directions (pages 361 and 362 in 63 VST) : Hence, the petition is disposed of with the following direction : The impugned order dated December 21, 2010 is hereby quashed. The revisional authority is directed to consider the eligibility of the petitioner for set-off in accordance with the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r utilized. This is not in dispute. Section 8 of the Central Sales Tax Act, 1956 (hereinafter referred to the CST Act ) prescribes rates of tax on sales in the course of inter-State trade or commerce. Section 8(5) of the Act gives power to the State Government to give exemption from payment of tax to any dealer having business of place in the State of M. P. The relevant provision is as under: (5) Notwithstanding anything contained in this section, the State Government may, on the fulfilment of the requirement laid down in sub-section (4) by the dealer, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, and subject to such conditions as may be specified therein, direct,- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority : Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit. If a dealer does not furnish the particulars along with C form as required under section 8(4) of the CST Act, then the dealer is liable to pay tax at 10 per cent., however, if a dealer furnishes C form, then the dealer is liable to pay the tax at four per cent. It is clear from the provisions that if a dealer furnishes C form with particular declaration, then it is liable to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for non-production of form C/D after May 13, 2002, the higher rate of tax will not be permissible to be set off from the limits prescribed under the eligibility certificate under section 4A of the U. P. Trade Tax Act. The rate of tax has nothing to do with the amount of tax benefit under the eligibility certificate. The incentive to be given to the industry, for the limit worked out, for specified period on graded basis is not linked to the rate of tax on the manufactured products. We may further observe that non-production of form C/D will not make the inter-State transaction illegal or void. It will only result into denying the manufacturer the benefit of reduced rate of tax. If we accept the argument of Shri S. P. Kesarwani, the require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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