2007 (11) TMI 554

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.... grants exemption from payment of purchase tax under section 5A of the Act provided the end-product is exigible to sales tax. In the returns filed for the assessment year 2000-01, the assessee had claimed exemption from payment of purchase tax relying upon S.R.O. No. 403 of 1994. The claim so made by the assessee was rejected by the assessing authority. Aggrieved by that order the assessee had filed appeal before the first appellate authority. During the interregnum, persons similarly placed like the assessee had approached the State Government to issue appropriate clarification with regard to the exemption available to the assessee and to the other assessees similarly situated like the petitioner who also manufactures block board and....

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....1) Was the Appellate Tribunal correct in law in not holding that the revision petitioner is entitled for exemption from purchase tax under section 5A of the KGST Act for the turnover on the soft wood consumed for the manufacture of block board considering S.R.O. No. 403 of 99 as also clarificatory letters dated June 8, 2002 and June 29, 2002 from the Government? (2) Has the Appellate Tribunal rightly applied the dictum of the case cited Bengal Iron Corporation v. Commercial Tax Officer [1993] 90 STC 47 (SC) laid down by the honourable Supreme Court in rendering the turnover of soft wood purchased by the revision petitioner unqualified for exemption from purchase tax under section 5A?" The State Government has issued the Notification S....

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....cturers of block board and block board frames are also eligible and entitled to claim exemption under S.R. O. No. 403 of 1994. The clarification issued by the Under Secretary to the State Government is as under: "I am directed to invite your attention to the letter cited as to inform that if the raw materials come under the purview of the soft wood, the SSI unit qualifies for tax exemption provided the other requirements are satisfied under the notification concerned." The first appellate authority, keeping in view the purport of the notification S.R.O. No. 403 of 1994 and the clarification issued by the Under Secretary to the State Government dated June 8, 2002, had allowed the assessee's appeal and had directed the assessing aut....