2011 (6) TMI 686

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....he gross taxable turnover at Rs. 17,24,18,484 and Rs. 3,86,20,244, respectively. On verification of the books of accounts by the Revenue it was observed that the assessee had effected purchases of palmolin oil, crude RB oil, RB oil, soya refined oil, etc. The assessee had also effected the inter-State purchase of sunflower de-oiled cake and sunflower solvent oil and sunflower solvent refined oil, and soya oil, etc. By going through the books of accounts the assessing authority held that the consignment sales of sunflower oil worth Rs. 34,17,352 which was claimed as exemption by filing F form was treated as inter-State sales not covered by C form and subjected to tax. That the assessee had also failed to file C forms in support of the inter-....

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.... in law in holding that no reference could be made to the schedule entries under the KST Act while interpreting any commodity in respect of which a Government notification is issued under section 8A of the said Act reducing the rate of tax or exempting the tax thereon? (c) Whether, on the facts and in circumstances of the case, can it be held that the Appellate Tribunal was right in law in ignoring that under the KST Act in the Second Schedule in serial No. 1 of Part O, oil cake and de-oiled cake are listed under two separate sub-headings as two difference commodities? Heard the learned counsel for the petitioner and the learned counsel appearing for the respondent. In terms of Second Schedule, item No. 1, the rate of tax for oiled....

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....s a notification inclusive of de-oiled cake. He further contended that the Tribunal has rightly appreciated the facts of the case and has considered the entries in the Schedule. On hearing the counsels we are of the considered view that the submission of the counsel for the appellant requires to be accepted. The State while issuing the notification in 2002 has restricted the reduction of duty from four per cent to two per cent, only so far as oiled cake is concerned as mentioned in item No. 1. The Tribunal has therefore interpreted the notification by wrongly applying the judgment in the case of B. H. Vasudeva Pai and Sons v. State of Karnataka in STA 1/87, STA 37 and STA 38/87 dated January 1, 1996 [2006] 146 STC 241 (Kar) [App.]. Accor....