TaxTMI 
TaxTMI 
2014 (3) TMI 864
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....cal Act") and the Central Sales Tax Act, 1956 (for short, "the Central Act") vide registration No.60/1/2791 dated 17.09.1999 and had provisional registration certificate issued by the General Manager, District industries, Central Daman. The certificate was basically for the manufacture of articles such as corrugated board and boxes, kraft paper rolls, glue, starch stitching wire, waste paper, ink, plastic twine and other paper products. 3. M/s. Sharda industries vide letter dated 18.03.2000 had informed the respondents that they had not yet commenced production as they have decided not to carry out manufacturing activity and therefore requested the respondent(s) to register them as trading and manufacturing dealer. Thereafter, M/s.Sharda Industries by an application dated 20.02.2001 had made a request for inclusion of items like computer stationery, computer consumables, note books, exercise books, registers, files plain or printed, printed forms/paper, telex/fax rolls, paper bags plain/printed, envelopes, stickers and labels, office stationery, offset printing/screen printing, BOPP tape, self adhesive tape etc. The registration certificate was amended with effect from 20.02.200....
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.... the said notification reads as under: U.T. ADMINISTRATION OF DAMAN AND DIU ADMINISTRATOR'S SECRETARY MOTI DAMAN - 396220 No. DMN/ST/4-1/99/2 Dtd: Dec. 31,1999 NOTIFICATION In exercise of the powers conferred by the sub-section (1) of Section 10A of the Goa, Daman and Diu Sales Tax Act, 1964 (Act 4 of 1964) as applicable to the Union Territory of Daman and Diu, the Administrator of Union Territory of Daman and Diu having considered it necessary so to do in the public interest, hereby exempts from payment of sales Tax leveled under the said Act on sale of goods manufactured, processed or assembled in the Union Territory of Daman and Diu by an Small Scale Industry/ Medium Scale Industry/ Large Scale Industry, registered as such by a competent authority, except those of high polluting nature as declared by the Central Government and mentioned in the Annexure appended hereto, for a period of 15 years/ 10 years/ 5 years respectively, from the date of first sale, or from the date of first consignment/ branch transfer as the case may be, of the goods manufactured, processed or assembled, effected by such Small Scale Industry or Medium Scale Industry or Large Scale In....
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....he exemption for the balance of the un-expired period of 15 years/ 10 years/ 5 years respectively under this Notification. x. The Small Scale/ Medium scale/ Large Scale Industry produces a certificate from the Directorate of Industries, U.T. Administration of Daman & Diu that the said industry is not of high polluting nature. ....... By order and in the name of the Administrator of Daman & Diu. In the second notification No.DMN/ST/4-1/99/2 the State Government exempted from payment of sales tax levied under the Local Act on the sale of goods manufactured, processed or assembled in the Union Territory of Daman and Diu by small scale industry, medium scale industry and large scale industry, registered as such, by a competent authority, except those industries of highly polluted industries as declared by the Central Government. The period of exemption was for 15 years/10 years/ 5 years depending upon the type of the industry, namely, small scale industry, medium and a large scale from the date of either the first sale or from the date of the first consignment or branch transfer as the case may be. The Notification also says that the exemption is of the goods manufactured, ....
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.....12.1999 had issued notification dated 17.10.2001 in the form of guidelines to understand the effect of the Notification, dated 31.12.1999. Clause (i) of the said Notification speaks of change in Constitution/ownership of industry, Clause (ii) speaks of change in class of goods or product line. The said notification is as under: U.T. ADMINISTRATION OF DAMAN AND DIU ADMINISTRATOR'S SECRETARIAT MOTI DAMAN - 396 220 NO.DMN/CST/2001-02/01 Dtd. Oct 17, 2001 NOTIFICATION In exercise of the powers conferred by Section 10A of the Daman and Diu Sales Tax Act, 1964 (Act 4 of 1964) (hereinafter called the said Act), and clause (xi) of Notification No.DMN/ST/4/1/99/2 dated 31.12.1999, the Administrator of Union Territory of Daman & Diu having considered necessary so to do in the public interest hereby proclaims the following guidelines in respect of industries/ dealers availing sales tax exemption. 1. Change in Constitution/ ownership of industry: Any Small Scale Industry which has obtained/ applied for provisional registrations from DIC, Directorate of Industries, UT Administration of Daman & Diu on or before 31.12.1999 but did not obtain permanent registration on ....
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....from payment of sales tax under Entry 68 of the Second Schedule to the Local Act only on the corrugated boxes. Further Sales Tax Officer informed the assessee that in view of Notification dated 17.10.2001 any industry which manufactures goods other than what was exempted earlier is liable to pay tax. The Sales Tax Officer had also informed the assessee that since the assessee is manufacturing a commodity other than the corrugated boxes, it is liable for payment of sales tax both under the Local Act as well as the Central Act. After receipt of the aforesaid show cause notice, we are informed that the appellant(s) had filed its reply. Be that as it may. 16. Appellant(s) being of the view that the Notification issued by the State Government in exercise of its powers under Section 10A of the Local Act, dated 17.10.2001 takes away its vested right had approached the Writ Court in Writ Petition No. 7298 of 2002. We have already noticed that the Writ Court being of the view that the Notification issued by the State Government is explanatory/clarificatory Notification had rejected the Writ Petition and thereby had confirmed the show cause notice issued by the Sales Tax Officer. That is ....
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....tion of the State Government was certainly to protect investors and to have growth in the State, but it was never the intention of the Government to give a blanket protection to all industries and all classes of goods. The exemption was only in relation to the products which were manufactured by the industries and which were availing exemption prior to 31.12.1999 provided that there is been no change in the class of goods even after 30.04.2000. Therefore, he would submit that the appellant(s) only had provisional registration and exemption for corrugated boxes under Entry 68 of the local Act prior to 31.12.1999 and therefore by virtue of Clause IX of the notification cannot claim exemption under Entry 68 for computer stationery and other related products and therefore the subsequent notification is merely clarificatory to the earlier notification of the Government and the appellant(s) is liable to the payment of sales tax retrospectively. 20. In order to resolve the controversy raised and canvassed by the learned counsel we need to look into certain provisions of the Local Act. Section 4 of the Act is the charging provision. Proviso appended to the said Section is in the nature ....
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....in goods which earlier enjoyed exemption prior to the issuance of the notification. The subsequent notification was only to further clarify that the exemption was available only in relation to the products which were manufactured by the industries and for which exemption was availed prior to 31.12.1999. By virtue of the first notification, Entry 68 stood deleted from the second schedule of the local Act. However, the second notification issued by the Government on the same day restored the exemption already availed under Entry 68 of the second schedule of the Act. The said notification under Clause XI also empowered the Government to issue directives from time to time to clarify the scope of the second notification of December, 1999. It is in the exercise of its powers, that the Government issued a third notification, which brought out the terms more explicitly to fall within the terms 'clarificatory' or 'explanatory' notification. This Court while considering the scope of an 'explanation' observed that, generally speaking, an explanation is intended to explain the meaning of certain phrases and expressions contained in a statutory provision. Depending on it....
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....new notification granting exemption for the first time in respect of parts of a power driven pumps to be used in the factory for manufacture of pumps but clarified the position and made the position explicit which was implicit. 26. This Court has further held in the case of Collector of Excise, Shillong vs. Wood Craft Products Ltd; a clarificatory notification would take effect retrospectively. Such a notification merely clarifies the position and makes explicit what was implicit. 27. In the instant case, the Sharda Industries had commenced production on 24.02.2001 and the registration with regard to class of goods were amended with effect from 20.02.2001. Therefore, the Sharda Industries were not in production of goods prior to 31.12.1999 or even 30.03.2000 and therefore Sharda Industries manufactured different class of goods only from 24.02.2001, pursuant to the amended registration. In such event, under the notification of the Government dated 17.10.2001, Sharda Industries and the appellant(s) as successor, both were not entitled to claim any benefit under Entry 68 read with Clause XI of the second notification. Therefore the latter notification is only clarificatory, to c....