9911796707
TMI Blog2017 (8) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... 29,774/- on the ground of its purchase at concessional rate by this petitioner for its own use under the Provincial Sales Tax law. Thus, the goods, which were purchased at a concessional rate of tax under Section 8(1) of the Central Sales Tax Act, 1956, as well as under Section 13(1)(b) of the Bihar Finance Act sold to registered dealer under Section 8(1) and 8(3) of the Central Sales Tax Act, 1956, has been subjected to tax at the rate of 10% instead of 4%. 2. Having heard learned counsels for both sides and looking to the facts and circumstances of the case, it appears that the petitioner is relying upon a notification issued by the erstwhile State of Bihar under Section 6(3)(c) of the Bihar Sales Tax Ordinance, 1976 dated 22nd December, 1976, whereby the Government of Bihar was pleased to exempt from levy of 'Special Sales Tax' and 'General Sales Tax' sale made to the United Nations International Children's Emergency Fund (UNICEF) of such goods as are certified by them to be required for use of the UNICEF. For the ready reference, the said notification reads as under :- "The 22nd December 1976. Bikri-Kar/San/1005/76-14416 - In exercise of the powers conferred by clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Sales Tax Act, those sales are not covered under Section 8(2A) of the Central Sales Tax Act, 1956. Looking to the exemption notification issued under Section 6(3)(c) of the Bihar Sales Tax Ordinance, 1976, there is an exemption from levy of 'Special Sales Tax' and 'General Sales Tax' upon the sales made to UNICEF, of such goods as are certified by them to be required for use of the UNICEF." This notification is to be read with Clause 1 of Part-C of Annexure-I to the Bihar Finance Act. For the ready reference, Clause 1 of Part-C of Annexure-I of the Bihar Finance Act reads as under :- "Part C Exemptions from sales tax granted without time limit from 1st January, 1977 in individual cases Sl. No. Notification No. Date Date of effect Particulars 1. 14416* 22-12-1976 1-1-1977 Sales of goods to the UNICEF certified by them as per the use by it. 2. 14418* do do -do- -do- to WHO -do -do- do- do- 3. 14426* do do Sales of medicines, food, hospital equipments and instruments to all leprosy hospitals in Bihar run by charitable institutions registered under Act 21 of 1960 (*Entries 1 to 3 are as amended by Notification No. 14552, dated 26th December, 1977 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It has been held by Hon'ble Supreme Court in the case of Commissioner of Sales Tax, J & K and Others v. Pin Chemicals Ltd. and Others reported in (1995) 1 SCC 58, in Paragraphs 4, 5, 6, 7 and 8 as under :- "4. A reading of the sub-section yields the following features : (a) The sub-section opens with a non obstante clause which gives an overriding effect to the rule contained therein over the provisions contained in sub-section (1A) of Section 6 and in sub-section (1) of Section 8 itself; (b) Where the turnover (or any part thereof) of a dealer relates to the sale of any goods, the sale or purchase of which is under the sales tax law of the appropriate State exempt from tax generally or is taxable at a rate lower than four per cent; (c) The Central sales tax shall equally be exempt or shall be charged at such lower rate, as the case may be; (d) The explanation which defines the expression 'generally' occurring in the sub-section clarifies that a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the State sales tax law if under such law (i) the sale or purchase of such goods is exempt only in specified circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents/dealers? We are of the opinion that the respondents/dealers' contention cannot be accepted in view of the clear and unambiguous language of the sub-section. 8. The idea behind sub-section (2A) of Section 8 of the Central Sales Tax Act, which we have analysed hereinbefore, is to exempt the sale/purchase of goods from the Central sales tax where the sale or purchase of such goods is exempt generally under the State sales tax law. We must give due regard and attach due meaning to the expression ' generally' which occurs in the sub-section and which expression has been defined in the explanation. If the said expression had not been there, it could probably have been possible to argue that inasmuch as the goods sold by a particular manufacturer-dealer are exempt from the State tax in his hands, they must equally be exempt under the Central Act. But sub-section (2A) requires specifically that such exemption must be a general exemption and not an exemption operative in specified circumstances or under specified conditions. Can it be said that the goods sold by the dealers in this case are exempt from tax generally under the State sales tax enactment? The answer can only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified circumstances or under the specified conditions and not generally, under the Provincial Sales Tax laws applicable in the State, then they are liable for payment under Central Sales Tax Act, as they are not covered under Section 8(2A) of the Central Sales Tax Act, 1956. The conditions attached in the notification issued by the erstwhile State of Bihar dated 22nd December, 1976 is to the effect that if such goods are certified by them to be required for the use of UNICEF, then only such sales are exempted from the payment of Provincial Sales Tax, meaning thereby to, there is no general exception for, every type of sale of goods, to the UNICEF. Thus, benefit under Section 8(2A) of the Central Sales Tax Act, 1956 cannot be availed by this petitioner. This aspect of the matter has been properly appreciated by the Assessing Officer, by the appellate authority as well as by the revisional authority and we see no reason to take any other view than what is taken by these authorities, especially, looking to Section 8(2A) of the Central Sales Tax Act, 1956 to be read with the aforesaid decision rendered by Hon'ble Supreme Court. 8. Second issue involved in this writ petition is ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
