TaxTMI 
TaxTMI 
1985 (9) TMI 336
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....d is directed against the order dated 12th June, 1978 of the Karnataka Appellate Tribunal, Bangalore ("Tribunal") in Appeal STA No. 153 of 1976. 2.. M/s. Peirce Leslie India Ltd., a public limited company, incorporated under the Companies Act, which is the respondent/assessee is, inter alia, engaged in the business of purchase and sale of cashew-nuts, cashew and cashew kernels. The assessee is a ....
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.... turnover of Rs. 13,56,548.61 to tax at the rate of 2 per cent under the Act. 4.. Aggrieved by the said order of the ACCT, the assessee filed an appeal before the Deputy Commissioner of Commercial Taxes (Appeals), Mangalore Division, Mangalore ("DC") who by his order dated 21st January, 1976 dismissed the same. Aggrieved by the said orders of the DC and ACCT, the assessee filed a second appeal be....
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....al and valid. 7.. On a fairly detailed examination of the question that arose before it, the Tribunal has found that the levy of sales tax on cashew kernels of Rs. 13,56,548.61 was wholly unjustified and has cancelled the same. We are of the view that this conclusion of the Tribunal flows from the language of explanation VI appended to Schedule II of the Act which reads thus: "Explanation VI.-Whe....
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....Shetty, J., and one of us (S.A. Hakeem, J.), speaking through the latter, examining one other question observed on the scope of the explanation thus: "It seems to us that explanation VI is in the nature of an exemption clause which provides for exemption of kernel from the tax at the sale point if tax had been paid on the purchase of cashew. This is obviously a concession extended by the legislat....