TaxTMI 
TaxTMI 
2010 (3) TMI 1030
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..... Though the revision petition was admitted to consider the following substantial questions of law: (i) Whether the Karnataka Appellate Tribunal was right in law in dismissing the appeals holding that the exemption granted to a 100 per cent EOU vide Notification No. FD 32 CSL 96 (V) dated November 15, 1996 is applicable only to the extent of goods purchased and used in the manufacture of goods which are physically exported out of the country and not applicable to extent of goods sold in the DTA? (ii) Whether the interpretation of the honourable Karnataka Appellate Tribunal of condition No. (i) of the Notification No. FD 32 CSL 96 (V) dated November 15, 1996 to the effect that the said condition provides for the quantum or the natur....
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....n dismissing the appeals holding that the exemption granted to a 100 per cent EOU vide Notification No. FD 32 CSL 96 (V) dated November 15, 1996 is applicable only to the extent of goods purchased and used in the manufacture of goods which are physically exported out of the country and not applicable to extent of goods sold in the DTA? In view of the request, we have to consider question No. 1 only. The facts leading to this case are as hereunder: The petitioner-assessee is a 100 per cent export oriented unit (EOU) set up in the year 1995. Pursuant to the notification issued by the Government under No. FD 32 CSL 96 (V) dated November 15, 1996, it purchased certain raw materials to be used for the manufacture of its products from a ....
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....the relief of all the orders which are required to be set aside. Per contra, the learned Government advocate contends that in view of the violation of clauses (i) to (iii) of the notification, the Revenue, invoking clause (v) of the notification, was justified in denying the relief to the assessee and therefore, she requests the court to dismiss the petition. Having heard the counsel for the parties, the only point to be considered by us in this petition is: Whether there is any violation of any of the clauses of the notification dated November 15, 1996 by the assessee to enable the Revenue to deny the relief entitled to by the assessee in terms of the aforesaid notification? In order to appreciate the contention of both the par....
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....ed with, either wholly or partly, the provisions of clauses (a) and (b) of subsection (5) of section 8A of the said Act shall apply and the 100 per cent export oriented unit shall be liable to pay an amount equal to the tax payable at the rates prescribed under the said Act, on purchases of raw materials, components, packing materials, intermediate and semi-finished goods and sub-assemblies in respect of which such contravention or non-compliance has taken place. The amount so payable shall be deemed to be amount due for purposes of section 13 of the said Act; (vi) Registered dealer effecting the sales to 100 per cent export oriented unit shall produce before the assessing authority, the certificate prescribed hereunder duly filled in an....
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....ax to nil under this notification is restricted to 100 per cent export oriented units under the package of incentives and concessions as per Government Order No. CI 30 SPC 96, dated March 15, 1996. Procedure.-The 100 per cent export oriented unit seeking this facility shall produce before the assessing authority: (i) Certificate issued by the Director of Industries and Commerce, Government of Karnataka or Government of India certifying that it is registered as a 100 per cent export oriented unit. (ii) The said certificate shall be produced, in proof of its being valid, in each assessment year, within 60 days of commencement of the assessment year. This notification shall be valid up to (March 14, 2001)." It is not in dispute ....
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....nd in favour of the Revenue. According to us, clauses (i) to (iii) are to be read together as we have to give harmonious constructions to the clauses in the notification, either of the clauses of (i), (ii) or (iii) cannot be read in isolation. The Joint Commissioner of Commercial Taxes (Appeals) as well as the Tribunal have committed a serious error in reading the clause in isolation with clause (iii) on account of bifurcation of clauses (i) to (iii) separately, and an error has been committed by the authorities below in denying the relief to the assessee. According to us, if relaxation has been granted by the Government, the assessee is entitled to sell its products in the domestic tariff area. If the assessee had sold in excess of the per....