TaxTMI 
TaxTMI 
2022 (12) TMI 597
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....ons of the West Bengal Value Added Tax Act, 2003, (WBVAT) carrying on business of banking and also a reseller of bullion, gold and silver. In their return for the period 2014-2015, they claimed exemption from tax under Rule 33A of the West Bengal Value Added Tax Rules, 2005 (the Rules) in respect of the sales made to the writ petitioner amounting to Rs. 18,60,65,057/-. The assessing authority of the said bank disallowed the claim for exemption on the sole ground that the purchasing dealer namely the writ petitioner did not manufacture the jewellery in the State of West Bengal but had manufactured the same at Coimbatore in Tamil Nadu state. The bank preferred appeal before the First Appellate Authority which was dismissed by the order dated 16.11.2017. Aggrieved by such order, the bank filed a revision petition before the tribunal. The said revision petition was dismissed by order dated 06.09.2021 which has now been challenged by the writ petitioner on the ground that they are the purchasing dealer and are aggrieved by such order. 3. We have heard Mr. Rajeev Kumar Agarwal, learned advocate appearing for the petitioner and Mr. T.M. Siddique and Mr. Debasish Ghosh learned advocates f....
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....and authority than Rule 33A. Further it is submitted that it was argued before the tribunal that any restrictions if it is to be placed depending upon the situs of manufacture, it will be a clear violation of Article 301 and 304 of the Constitution of India. The learned Advocate for the appellant had elaborately referred to the decision of the tribunal in the case of Nayara Energy and the decision was sought to be pressed into service to be in the nature of the arguments made by the learned advocate in the case before us. It is the submission of Mr. Agarwal that the form appended to the rules has to be in conformity with the provisions of the Act and rules framed thereunder and a form is lower in hierarchy to the rules and in the absence of any such restrictions that the goods have to be manufactured in West Bengal in the substantive rule, such a condition cannot be imposed by including a clause in the form. In other words, it is submitted that the form of declaration cannot prescribe restrictions or conditions beyond the rules. It is further submitted that the respondent state have accepted the decision in Nayara Energy, it has become a binding precedent. It is further submitted t....
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....fied in sub rule 3" and sub rule (3) specifically lays down two pre conditions for claiming deduction under Section 16(1) (c) of the Act namely, (a) that the selling dealer shall furnish the relevant invoices / cash memo evidencing such sales and (b) a certificate in a form appended to the rule duly filled in and signed by the purchasing dealer. It is submitted that the said form clearly stipulates that the purchasing dealer must certify that the goods purchased from the selling dealer are for the purpose of use in the manufacture of jewellery in West Bengal. It is submitted that if the Rule 33A is read in its entirety, it is evident that there is a continuity of expression which ends with the form of certificate. Therefore, it is submitted that the words in the rule should be understood by harmonizing the same with the provisions of the Act and the object of the legislation. In support of such contention, reliance was placed on the decision of the Hon'ble Supreme Court in Durgabai Deshmukh Memorial Senior Secondary School and Another Versus J.A.J Vasu Sena and Another (2019) 17 SCC 157 and for the same proposition, reliance was placed on the decision of the Hon'ble Supreme Court i....
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....tted that the decision in Jindal Stainles Limited has absolutely no application to the facts of the case on hand. Further the decision in Jindal Stainless Limited was considered in Patina Gold Ornaments and the decision has been rendered in favour of the dealer. It is further submitted that the decision in Dilip Kumar will not apply to the facts of the case on hand as it pertains to entitlement of general exemption and not deduction from turnover of sales. Further there is no ambiguity in Rule 33A and the only issue is with regard to the inconsistency of the form of certificate. The decision in Dilip Kumar had been explained in the decision in Mother Superior Adoration Convent. Further the argument of the state that the rule seeks to promote manufacture of jewellery within the state was a similar argument which was dealt with in Patina Gold Ornaments. Further it is submitted that if the stand taken by the respondent is accepted then the assessee who is a registered dealer in West Bengal would not be able to undertake the manufacture on job work basis outside the state which is not envisaged in the rules. That apart, denial of deduction under Rule 33A on the basis of situs of manufa....
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....ial No........ Date.......... To ......................(bank/MMTC/dealer) .....................(Address) .....................(Certificate of Registration No., if any) Certified that the goods purchased from you as specified in the invoice/cash memo stated below are for the purpose of use in the manufacture of jewellery in West Bengal to be exported by *me/us out of the territory of India and are not intended to be disposed of otherwise by -me/us. Invoice/Cash Memo No. and date Description of goods Quantity Amount (1) (2) (3) (4) Name and address of the purchasing dealer: Certificate of Registration No: Date................... Signature and status of the person signing the certificate *Strike out which is not applicable. 9. Rule 33A deals with exemption from tax on a certain sales of gold, silver, platinum and diamond or precious stones. Sub rule (1) states that where any scheduled commercial bank, authorised by Reserve Bank of India to import gold or silver or platinum from outside India or the minerals and metal trading corporation of India sells gold, silver or platinum to a registered dealer in West Bengal for the use of such goods, by such regist....
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....ractive but we are required to examine the rule in its entirety by bearing in mind the cardinal principle of statutory interpretation that is to say that the rule has to be read as a whole and in the context and the object of the legislation. 10. The first and foremost aspect which is conspicuously present in Rule 33A is that both the purchasing dealer and the selling dealer should be registered dealers under the provisions of the WBVAT. Unless this pre condition is satisfied the claim for exemption from tax on sales of gold, silver and platinum and diamond or precious stones is impermissible. It is not in dispute that the petitioner and the respondent bank are registered dealers in West Bengal. 11. The second condition is that the gold, silver or platinum which is sold/purchased has to be used by such registered dealer (registered purchasing dealer in West Bengal) in manufacture of jewellery to be exported by him. If both the registered dealers fulfils this criteria the exemption is to the effect that the selling dealers can deduct the turnover of such sales of goods under clause (c) of Sub section (1) of Section 60. This exemption is subject to the conditions specified in sub r....
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.... in the statute and the object and purpose to be achieved. Further the mandatory requirements of those conditions must be obeyed or fulfilled exactly though at times some latitude can be shown. 12. In Dilip Kumar, the Hon'ble Supreme Court clarified the position of "plain meaning rule or clear an unambiguous rule" with respect to tax law by holding that the when the language in the statute is plain and unambiguous, the court has to read and understand the plain language as such and there is no scope of any interpretation. Further it was held that in interpreting a taxing statute equitable considerations are entirely out of place, a taxing statute cannot be interpreted on assumptions and presumptions and it has to be interpreted in the light of what is clearly expressed, it cannot imply anything which is not expressed, it cannot import provisions in the statute so as to supply any deficiencies and that any vagueness in the exemption clauses must go to the benefit of revenue. 13. As mentioned above, if we read the scheme of the WBVAT and the rules, it is clear that the Rule 33A was intended to give a special benefit to dealers registered in the State of West Bengal that is both the....
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....tived by us for reasons set out in the preceding paragraphs and therefore the decisions relied on the said point are not discussed. The decision in Babu Goverdhan Regular Motor Service relied on by Mr. Siddique is closer to the facts of this case and we do not accept the submissions of Mr. Agarwal that the decision would not have any application to the case on hand. The ratio of the decision is that the Section 46 of the Motor Vehicles Act, 1939 and the relevant rule and the form prescribed have been held to be read together and so read, it follows that an applicant for stage carry permit must comply at any rate, substantially with the various matters mentioned therein. It was held that by prescribing the form the State Government has not acted beyond the rule making power as the form is an integral part of the Rule 80 of the said rules which the State Government therein was authorised to make under Section 68 of the Motor Vehicles Act, 1939. As held by us, the form is not only integral part of the rule but embodied in the rule itself as it is mandatory condition imposed on the selling dealer in obtaining a certificate from the purchasing dealer. This condition could be imposed onl....