TaxTMI 
TaxTMI 
2007 (2) TMI 599
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....d goods under the Central Sales Tax Act. Brief facts of the case are that the dealer/opposite party (hereinafter referred to as "the dealer") is an institution certified by the U.P. Khadi and Village Industries Board and engaged in the manufacturing of shoes. In exercise of power under section 4(b) of the U.P. Trade Tax Act goods manufactured by the institution certified by the U.P. Khadi and Village Industries Board is not liable to tax under the Notification No. ST-II-7037/ X-7(23)/83-U. P. Act XV/48-Order-85, dated January 31, 1985. The exemption has not been allowed by the assessing authority. The Tribunal, however, allowed the exemption on the turnover of inter-State sales in view of section 8(2A) of the Central Act. Heard ....
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....r assessment year 1982-83 Notification No. ST-II-5025/X-6(12)-1979-U. P. Act XV/48-Order-79, dated June 30, 1979 is applicable in which there was no condition for the exemption. He further submitted that under the Notification No. ST-II-7037/X-7(23)/83-U.P. Act XV/48-Order-85, dated January 31, 1985 the conditions are relevant for purchases and not for sale. According to him, there was no condition granting exemption on sale. He submitted that for the first time two conditions were imposed for the exemption on sale vide Notification No. ST-II-709/11-9(53)/91-U.P. Act XV-48-Order-97, dated February 27, 1997. He submitted that vide circular dated July 23, 1977 Government has taken a view that the exemption granted on the sale to the institut....
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....cation No. ST-2-7037/X-7(23)/83-U.P. Act XV/48-Order-85, dated January 31, 1985. "In exercise of the powers under clause (b) of section 4 of the Uttar Pradesh Sales Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), and in supersession of all previous notifications issued under the aforesaid clause, the Governor is pleased to exempt, with effect from February 1, 1985, the sale or purchase of the goods mentioned in column 2 of the Schedule hereunder by the persons or the class of persons mentioned therein, from tax under the said Act of 1948, subject to the conditions, if any, specified in column 3 thereof: SCHEDULE SI. No. Description of goods/perso....
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....mption is to the institutions certified by All India Khadi and Village Industries Commission, Mumbai or by U.P. Khadi and Village Industries Board, Kanpur and not with reference to the goods or a class or category of goods. Under the aforesaid notifications goods are not generally exempted from tax under the U.P. Trade Tax Act. The exemption is not general but conditional one, namely, available only to the institutions certified by All India Khadi and Village Industries Commission, Mumbai or by U.P. Khadi and Village Industries Board, Kanpur. Section 8(2A) of the Central Act came up for consideration before the apex court in the case of Commissioner of Sales Tax, Jammu and Kashmir v. Pine Chemicals Ltd. reported in [1995] 96 STC 355. The ....
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.... Ranadey Micronutrients v. Collector of Central Excise [1996] 10 SCC 387, this court held that the whole objective of such circulars is to adopt a uniform practice and to inform the trade as to how a particular product will be treated for the purposes of excise duty. The court also held that it does not lie in the mouth of the Revenue to repudiate a circular issued by the Board on the basis that it is inconsistent with a statutory provision. Consistency and discipline are, according to this court, of far greater importance than the winning or losing of court proceedings. In the case of Collector of Central Excise, Bombay v. Jayant Dalal (Pvt.) Ltd. [1997] 10 SCC 402, this court has held that it is not open to the Revenue to advance an argum....