1986 (2) TMI 310

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....es and other rubber goods. It started its production from 10th October, 1974, and got itself registered as small-scale industry under the Industries Department of the State Government. The State Government issued a notification dated 9th September, 1969, exempting newly established small-scale industries from payment of sales tax for a period of five years from the date of their production. This benefit was extended again up to 31st March, 1979, by another notification dated 14th March, 1974. The Government has further granted exemption from the levy of both general sales tax and special sales tax on the finished products by the newly set up industries at the first stage of sale. The case of the petitioner further is that in view of the pro....

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....of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than four per cent (whether called a tax or fee or by any other name) shall be nil, or, as the case may be, shall be calculated at the lower rate. Explanation-For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods." 4.. According to the petitioner, it is ent....

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....urt has interpreted the expression "in specified circumstances or under specified conditions" and held that such circumstances or conditions the non-existence or non-performance of which precludes the grant of exemption; so that if those circumstances do not exist or those conditions are not performed then the sales of goods cannot be exempted from tax even if they are effected by a class of dealers to whom exemption is granted and during the period for which exemption is granted. In other words, the generality of section 8(2A) is destroyed by the explanation only if the exemption is dependent upon non-existence or non-performance of any circumstance. In this decision, the sale of "niwar" was exempted for a specified period from the Stat....