1992 (7) TMI 309

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.... 12(8) of the Act on the basis of observation made in the audit report? (iii) The rate of tax to which the sale in question is taxable, if at all. 2.. In so far as the first question is concerned, the learned counsel appearing for both the sides have cited certain decisions which are really not relatable to the question at hand. These decisions are: (1) H.T. Chemical Laboratories v. State of U.P. [1972] 29 STC 148 (All.), (2) Rashtra Deep Laboratory v. Commissioner of Sales Tax [1983] 53 STC 419 (All.), (3) State of A.P. v. Raja Medical Stores [1983] 53 STC 428 (AP) and (4) Bavishi & Sons v. State of Gujarat [1992] 84 STC 161 (Guj). In all these cases, the courts were called upon to decide on the basis of the exemption entries in the ....

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....t the same was being used by batteries fitted in motor vehicles, we have no doubt that even then it would not fall within the word "water" as used in entry 39, as distilled water in the later case also would be meant for consumption by motor vehicle, and not a human being. We, therefore, reject the first submission of Shri Ray. 5.. As to the second question, the learned counsel states that the observation made in the audit report cannot provide the basis for reassessment proceeding under section 12(8) of the Act. He submits that as the audit report opined that exemption was not available to the dealer because he was selling distilled water whereas exemption was meant for "water", the information given by the audit party was on question o....

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....aring for the department brings to our notice the decision in Maharajadhiraj Sir Kameshwar Singh v. State of Bihar [1959] 37 ITR 388 (SC); AIR 1959 SC 1303 in which the court was seized of the interpretation of section 26 of the, Bihar Agricultural Income-tax Act, reading: "If for any reason any agricultural income chargeable to agricultural income-tax has escaped assessment.............." (Emphasis supplied) which is also the language used in section 12(8) of the Act which opens by saying: "If for any reason the turnover of a dealer for any period to which this Act applies has escaped assessment......." (Emphasis ours) 7.. While dealing with the aforesaid provision of the Bihar Agricultural Income-tax Act, the court observed in pa....