Interpretation of statute - non-obstante clause - exemption ...

VAT and Sales Tax

March 6, 2023

Interpretation of statute - non-obstante clause - exemption granted on the basis of the turnover of a dealer - conditional exemption or not - The exemption under Entry 68 Part B to the Schedule IV is conditional and the said goods on being despatched to places outside the State would attract the levy of purchase tax under Section 12 of the TNVAT Act. Thus the challenge to the levy of purchase tax is liable to be rejected. Input tax credit of the purchase tax would be subject to Section 19 of the TNVAT Act - the impugned orders insofar as it imposes penalty are liable to be set-aside. - HC

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