2010 (3) TMI 1044

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....bstantial question of law: "(i) When the appellant is the first seller of iron ore to a registered dealer in Karnataka is required to produce form 32, in order to claim exemption under section 5(3)(b) of the KST Act?" 3. We have heard the Sri Naganand, learned senior counsel appearing for the appellant and Smt. Geetha Menon, learned Government Advocate for the respondent-Revenue. 4. The assessee is questioning the legality and correctness of the order passed under section 22A(1) of the Karnataka Sales Tax Act, 1957 dated September 30, 2008 passed by the Additional Commissioner of Commercial Taxes, Bangalore. 5. The facts leading to this case are as hereunder. 6. The assessee is a mine owner extracting iron ore from the mines at Hospet.....

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.... assessee being the first seller was required to produce declaration in form 32. Accordingly, he restored the order passed by the assessing officer by setting aside the order passed by the Joint Commissioner of Commercial Taxes. Being aggrieved by the same, the present appeal is filed. 7. The learned senior counsel Mr. Naganand contends that the Additional Commissioner has confused himself in regard to the declaration to be submitted by a dealer. According to him, form 32 has to be issued by a registered dealer to the first purchaser. If the purchaser claims any exemption of taxes there is no mandatory for the assessee who himself is a first seller to produce form 32 as the first seller is not required to obtain any declaration from the pu....

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....(a) of the Karnataka Sales Tax Rules, which reads as hereunder: "26. (9) (a) Every dealer in goods taxable at the point of first sale or first purchase in the State, shall, where he is not liable to tax in respect of such goods by reason of his not being the first seller or the first purchaser, furnish to the assessing authority a declaration in form 32 obtained from the registered dealer who sold the goods to him and for this purpose, the seller of such goods shall issue the declaration to the buying dealer." 11. Having read the provision of law, we are of the opinion that the production of form 32, would be applicable only to the person if a purchase tax has to be paid by such purchaser being a registered dealer under the KST Act, provi....