J.K. LAKSHMI CEMENT LTD. Vs. COMMERCIAL TAX OFFICER, PALI
SUPREME COURT OF INDIA
J.K. Lakshmi Cement Ltd.
Commercial Tax Officer, Pali
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DIPAK MISRA, J. -
(1.) The appellant is a Public Limited Company
incorporated under the Companies Act, 1956 and engaged
in the business of manufacturing and selling Grey Portland
Cement. In exercise of powers conferred by Section 8(5) of
the Central Sales Tax Act, 1956 (for short, "CST Act"), the
Government of Rajasthan had issued a Notification No.
F4(72)FD/Gr.IV/81 -18 dated 06.05.1986 allowing partial
exemptions from the sales tax payable in respect of
inter -State sales in the manner and subject to the
conditions mentioned therein. Partial exemption was
granted under the said notification at the rate of 50%/75%
on the basis of increase in the percentage of the entire
inter -State sales and decrease in percentage of stock
transfers but the benefit under the said notification was not
available on levy cement. From the assessment year
1989 -90 to 1997 -98 the appellant had been granted benefit of partial exemption under the notification dated 06.05.1986 except for the assessment year 1995 -96 and 1996 -97 as no claims were made by the appellants being not eligible.
(2.) It is necessary to state here that the State, in exercise of powers conferred by Section 8(5) of the CST Act, issued Notification No. F4(8)FD/GR.IV/94 -70 dated 07.03.1994
superseding the notification dated 09.01.1990 and directing
that in respect of inter -State sales of cement, tax payable
under sub -sections (1) and (2) of the said Section shall be
calculated at the rate of 4% without furnishing declaration
in Form 'C', inter alia, subject to the condition that the
dealer making inter -State sales under this notification shall
not be eligible to claim benefit provided by partial exemption
notification dated 06.05.1986. This notification remained in
force from 01.04.1994 to 31.03.1997.
(3.) The CCT vide Circular No. 2/94 -95 dated 15.04.1994 clarified that inter -State sales of cement duly supported by 'C' and 'D' forms shall be eligible for benefit of partial
exemption notification dated 06.05.1986 and that such
benefit would not apply to inter -State sales which are not
supported by declarations in declarations in Forms 'C'/'D'.;
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