TaxTMI 
TaxTMI 
2011 (4) TMI 1269
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.... appeals are one and the same, they are taken up together for consideration and disposed of by this common order. The assessees in both these cases are registered dealers trading in arecanut and black pepper. They are effecting both local sales and consignment sales in the course of inter-State trade and commerce. The assessees availed of transitional relief on the sales tax suffered arecanut and black pepper, which was held in stock during the period from April 1, 2004 to April 1, 2005. On verification of books of accounts, on the ground that the assessees are not entitled to transitional relief, proceedings were initiated under section 39(1) of the Karnataka Value Added Tax Act, 2003. In the said proceedings, the assessing authority....
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....2006 as per the provisions of section 18 read with rale 166 and consequently, this rale inserted is only clarificatory in nature and does not have retrospective effect. After hearing the assessees, he proceeded to set aside the order passed by the appellate authority and restored the order of assessing authority and in fact, he also directed that the exemption granted for inter-State sales prior to April 1, 2005 should be collected. Aggrieved by the said order, the assessees are in appeals before this court. Sri Indrakumar, learned senior counsel appearing for the assessees, assailing the impugned order contended that section 18 of the KVAT Act extends the benefit enjoyed by the assessee in respect of goods purchased on or after April 1,....
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....ataka Sales Tax Act, 1957 in respect of arecanut and other seeds mentioned therein. If arecanut has suffered sales tax, he is exempted from paying Central sales tax under the Central Sales Tax Act. In the instant case, it is not in dispute that the assessees have paid KST. In exercise of the powers conferred by section 8A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka exempted with effect form the first day of April, 2005, the tax payable by a dealer under the said Act on the sale or purchase of all goods except the following goods, namely:- (1) Petrol including aviation fuel. (2) Motor spirits not falling under item (1) above. (3) Sugar cane. The said notification came to be issu....
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.... omitted from the Rules. Rule 166(5A) reads as under:- "(5A) No relief shall be allowed under sub-rule (1), in respect of any goods taxable under the Act held in stock, which are sold in the course of inter-State trade or commerce on which no tax is payable under the Central Sales Tax Act, 1956 (Central Act 74 of 1956)." Both the assessing authority as well as the revisional authority proceeded on the assumption firstly that when VAT Act came into force the exemption notification on which the assessee relies on is no more in force. Secondly, under the provisions of the VAT Act, when the assessee has availed of the transitional benefit, he is not entitled to exemption claimed under the said notification. The revisional authority in ....