2000 (1) TMI 946

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..... The questions raised for consideration in this case, as framed by the assessee in petition, are that: (a) Whether in view of the exemption available to the petitioner under the incentive scheme the authorities below were right in levying purchase tax and interest on purchases of whole pulses by the petitioner from the cultivators? (b) Whether the finding recorded by the Tribunal and the authorities below stands vitiated on account of mis-construction of the notification dated September 8, 1976 issued by the State Government under section 4(2) of the State Act? (c) Whether purchase tax is leviable on purchases from unregistered dealers in the light of notification dated September 8, 1976? (d) Whether whole pulses can be treated....

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....er the Sales Tax Incentive Scheme as promulgated, by notification dated May 23, 1987 which exempts the industrial units from payment of tax on the sales of the goods manufactured by them within the State or in the course of inter-State trade and commerce and exemption is to the extent to the maximum limit permissible thereunder. Under the incentive scheme liability to pay tax is to be adjusted against the maximum quantum limit, within the stipulated period after which the dealer becomes liable to pay tax. Apart from that about the liability of the dealer, who is eligible to claim benefit of scheme, in respect of purchase tax, including any concession to be included, is entitled under the existing provisions. Explanation to clause 4 of the s....

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.... section. The notification of exemption contains the conditions as prescribed to avail the benefit of notification. Viewed in this light when the incentive under the scheme exempts the eligible industrial unit from payment of tax on sales of goods manufactured by it within the State or in the course of inter-State trade and commerce, it is not possible for the eligible unit availing the incentive to fulfil the condition of said notification dated September 8, 1976. One has to recall that the incentive under the scheme is not the exemption from levy of sales tax, but from payment of sales tax only up to the prescribed limit of quantum. The conclusion is irresistible that it is not permissible, as feasible in law for an assessee to claim t....