Back
HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
MR. JUSTICE BIRENDRA KUMAR, J
Banswara Syntex Ltd. – Appellant
Versus
Asst.Commissioner C.T. Banswara – Respondent
| Table of Content |
|---|
| 1. petitioner engaged in manufacturing (Para 2) |
JUDGMENT :
(BIRENDRA KUMAR, J.)
1. Heard the parties.
2. The petitioner is engaged in the business of manufacturing and trading of Synthetic and Acrylic Yarns in the State of Rajasthan. The State of Rajasthan in exercise of power conferred under Section 8(5) of the Central Sales Tax Act 1956 issued a notification bearing SO No.23 dated 06.05.1986 providing for partial exemption from tax payable in respect of the sales, by the assessee, of the goods in course of inter-State trade or commerce.
3. The petitioner claims 75% of exemption in the matter of inter-State Trade and the Taxing Authority has allowed only 50% exemption of the tax for the assessment year 1999-2000.
4. Initially, the Assessment Authority passed order dated 28.02.2002 allowing only 50% of deduction. The said order was challenged before the Appellate Authority in Appeal No.7/CST/01- 02. The appeal was also dismissed on 27.09.2002. The order of the Appellate Authority was challenged before the Rajasthan Tax Board in Appeal No.1586/2002. The Tax Board also dismissed the appeal by order dated 19.12.2003. Hence, this tax revision under Section 86(2) of the Rajast
The court upheld the Tax Board's interpretation of tax exemption calculations based on percentage increases in inter-State sales, affirming that authorities acted within the notification's spirit.
The Notification under Section 8(5) of the CST Act operates independently, allowing a reduced tax rate without the conditions of Section 8(4) applying.
The amendment to Section 8(5) of the CST Act does not retrospectively affect previously granted tax exemptions, which remain valid unless revoked with notice.
The court clarifies the conditions under which sales are taxable and addresses inter-State sales exemptions under the General Sales Tax Act.
Tax exemption for HDPE woven fabrics requires actual levy of additional duty; nil rate does not equate to exemption under sales tax law.
Exemptions under G.O.Ms. No. 1091 are general under state law but do not qualify as general exemptions under the Central Sales Tax Act due to specific conditions in the exemption notification.
The amendment to Section 8(5) of the CST Act applies prospectively and does not retroactively affect vested rights to tax exemption granted prior to the amendment.
The court ruled that non-furnishing of 'C' Forms by a purchaser due to financial distress does not absolve entitlement to tax exemptions under Section 6(2) of the Central Sales Tax Act, 1956.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
