https://www.taxtmi.com/caselaws?id=162752 The proviso to section 5(3) of the Kerala General Sales Tax Act, 1963 does not withdraw the concessional rate for industrial raw materials merely because the finished products are exempt under a notification; exemption from turnover tax is not the same as no tax liability under the Act, so the concession remains available. Differential tax and penalty also cannot be sustained unless the raw materials purchased at concession are shown to have been diverted from the declared use. As no misuse of the declaration form was established, the additional tax demand and penalty were held unsustainable. en-us Mon, 17 Oct 2005 00:00:00 +0530 Thu, 13 Mar 2014 16:42:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=162752 The proviso to section 5(3) of the Kerala General Sales Tax Act, 1963 does not withdraw the concessional rate for industrial raw materials merely because the finished products are exempt under a notification; exemption from turnover tax is not the same as no tax liability under the Act, so the concession remains available. Differential tax and penalty also cannot be sustained unless the raw materials purchased at concession are shown to have been diverted from the declared use. As no misuse of the declaration form was established, the additional tax demand and penalty were held unsustainable. Case-Laws VAT and Sales Tax Mon, 17 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=162752