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of <h1>High Court rules on tax liability for 'desi sweetmeats' exemption, clarifies jurisdiction in legal revisions</h1> The High Court held that the corrigendum Notification did not have retrospective effect, maintaining the exemption for 'desi sweetmeats' from April 26, ... - Issues:Interpretation of sales tax exemptions for 'desi sweetmeats and namkins' under Notifications, retrospective effect of corrigendum Notification, liability for tax on sales, jurisdiction to raise legal questions in revision.Analysis:The case involved two sales tax revisions challenging the Tribunal's order on exemptions for 'desi sweetmeats and namkins.' The issue arose when the Notifications exempting these items were withdrawn, leading to a dispute on the liability for tax. The Tribunal held the assessee liable for tax from April 26, 1972, but exempted sales up to Rs. 60,000 for the period from April 26, 1972, to March 31, 1973. The main contention was whether the corrigendum Notification dated October 5, 1972, had retrospective effect, impacting the liability for tax.The legal argument centered on the retrospective effect of the corrigendum Notification and the interpretation of section 4(2) of the Act. The High Court analyzed the legislative intent behind the provision and cited precedents to establish that retrospective actions by the State Government require express statutory authority. The Court emphasized that the corrigendum Notification was an addendum, not a correction, and dealt with a separate item from the original Notifications. Therefore, the exemption for 'desi sweetmeats' could not be withdrawn retrospectively from April 26, 1972, as claimed by the assessing authority.Furthermore, the Court considered the turnover threshold for taxable sales under another Notification. The turnover of Rs. 60,000 for the relevant period did not exceed the taxable limit, leading to the conclusion that the assessee was not liable to pay tax for the sales during the specified timeframe. Consequently, the Court partially allowed one revision, holding the liability from October 5, 1972, and fully allowed the other revision, absolving the assessee from tax liability for the sales in the year 1972-73.The legal jurisdiction to raise questions of law in revision was also addressed. The Court clarified that the Act did not prohibit raising new legal issues before the High Court in revision, provided they were stated in the application. As the questions of law were raised in the revision petitions, the Court had the authority to decide on these issues. This clarified the procedural aspect of raising legal arguments in sales tax revisions, ensuring a comprehensive review of the legal aspects involved in the case.In conclusion, the High Court's judgment clarified the retrospective effect of Notifications, liability for tax on specific sales, and the procedural aspects of raising legal questions in sales tax revisions. The detailed analysis provided a clear interpretation of the legal provisions and precedents, resulting in a favorable outcome for the assessee in terms of tax liability and legal jurisdiction.
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