2009 (7) TMI 1200

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....e District Leprosy Officer, which is a Department of the State Government. The tax was levied at four per cent. According to the petitioner, inasmuch as the sales were effected to the District Leprosy Officer, which is a central purchasing agency of the State Government and who, after effecting the purchase, used to distribute it to various leprosy centres run by the Government, by virtue of G. O. P. No. 2280 Revenue dated April 30, 1973, there was total exemption from payment of sales tax. Considering the said contention, the Appellate Assistant Commissioner as well as the Tribunal have found that in G. O. P. No. 2280 dated April 30, 1973, exemption from payment of sales tax by any dealer on the sales to the voluntary leprosy institutions ....

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....nt hospitals and institutions shall be ordered centrally. A drug management group with the officers and staff of the Director of Medical Education, Director of Medical and Rural Health Services and Director of Public Health and Preventive Medicine shall be constituted to implement the programme of central purchase system effectively. (ix) Central Purchase Committees: A Single Central Purchase Committee takes considerable time to finalise the rate for all the drugs. In view of the classification of drugs under "A" "B" and "C lists, the tender finalisation will be made by separate committees headed by Director of Medical Education, Director of Medical and Rural Health Services and Director of Public Health and Preventing Medicine. The comp....

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....es Tax Act clearly sets out that after availing of the concessional rate of tax under sub-section (3), if the assessee does not sell the goods so manufactured, but despatches them to a place outside the State either by branch transfer or by transfer to an agent, by whatever name called, for sale, or in any other manner, except as a direct result of sale or purchase in the course of inter-State trade or commerce, the assessee is liable to pay in addition to the concessional rate of tax paid under sub-section (3), the tax at two per cent of the value of the goods so purchased. There is no dispute that the petitioner initially availed of the concessional rate of tax based on form 17 and then subsequently there was a sale covered by section ....