- (1.) THIS is a revision 'against the order of the Dy. Commissioner, Excise and Taxation (Appeals), Jaipur dated 13. 2. 64.
(2.) THE brief facts of the case are that the petitioner manufacture idols and images of marble stone. THE petitioner has been asked by Sales Tax Department for getting himself registered from the year 1959-60. THEreupon the petitioner applied to the Assistant Authority for grant of exemption certificate under sec. 4 (2) of the Rajasthan Sales Tax Act with retrospective effect from 1959-60. THE Assistant Sales Tax Officer rejected the application saying that the application should have been furnished within the prescribed period under rule 11 and 12 of the Rajasthan Sales Tax Rules, 1955. Aggrieved by the order of the Assistant Sales Tax Officer, the petitioner went up in appeal before the Deputy Commissioner, Excise & Taxation (Appeals), Jaipur who rejected the appeal on 13. 2. 64. Aggrieved by the order of the Deputy Commissioner Excise & Taxation, (Appeals), Jaipur dated 13. 2. 64, the petitioner has come up in revision before the Board of Revenue. The learned counsel for the petitioner has argued that the sale of images and idols has been exempted from sales tax by the Government notification dated 14. 4. 55 and hence no sales tax is leviable on the petitioner. At the most the petitioner can be asked to obtain exemption certificate. He has however conceded that he could not obtain the exemption certificate earlier as he was all the time under the impression that he is not liable to sales tax in pursuance to Government notification dated 14. 4. 55. He has contended that as per proviso to rule 12 of the Rajasthan Sales Tax Rules, the exemption certificate can be granted even after the prescribed time after imposing the penalty not exceeding double the amount of the exemption fee. He has also argued that the Sales Tax Department has granted exemption certificate retrospectively to Military Canteen and Central Storage Depot etc. The learned Government Advocate has argued that the petitioner has not obtained exemption certificate within the prescribed time and hence no exemption certificate can be granted for the past years and if he is found liable to sales tax the same will be assessed and recovered from the petitioner. He has argued that the scheme of the Act does not provide anywhere to grant exemption certificate retrospectively. While replying to the point that why exemption certificates have been granted retrospectively to Military Canteen and Central Storage Depot he has stated that it is also the discretion of the Government to grant any exemption to any person as per section 4 (2) of the Rajasthan Sales Tax Act. I have heard both the counsel for the parties and gone through the entire record. The argument of the learned Government Advocate appears to be illogical when on the one hand he says that the scheme of the Act does not provide any where the grant of exemption certificate retrospectively and on the other hand in the same breath he says that it is in the discretion of the Government to grant any exemption to any person as per section 4 (2) of the Rajasthan Sales Tax Act. As a matter of fact the Government has exempted the items in dispute from sales tax vide its notification dated 14. 4. 55 and the petitioner ought to have obtained exemption certificate. The sales tax department has asked the petitioner to get himself registered with retrospective effect from 1959-60 and simultaneously the petitioner has applied for exemption certificate. Since the petitioner did not obtain exemption certificate earlier he is definitely liable for penalty, but to impose sales tax on his turnover would defeat the very intention of the authorities to exempt the dispute items from sales tax. I, therefore, accept the revision, set aside the order of the Deputy Commissioner (Appeals), Jaipur dated 13. 2. 64 and remand the case to him to decide the appeal in light of the observations made above according to law. .;