Vineet Kothari, J. - (1.) The question of law which was framed for consideration in the present revision petition filed by the assessee is as under: Whether the exemption notfn No. 1490 dated 17.9.2001 (SO No. 183) issued under Sec. 15, RST Act exempting sale or purchase of all kinds of man -made fibers and man -made yarn to which the rate of tax in respect thereof exceeds 2% also covered the turn -over tax imposed on the respondent -assessee under Sec. 13A of the RST Act, 1994 or the said exemption is limited to the individual sale or purchase of the specified commodities in the said notfn.
(2.) The Revenue Authorities, all three, concurrently held against the petitioner -assessee that the notfn dated 17.9.2001 did not cover the turnover tax payable by the assessee Under Sec. 13A of the RST Act, 1994 (hereinafter referred to as 'the Act').
(3.) Before coming to the controversy and case laws, it is considered expedient to reproduce provisions of the Act and exemption notification and rate notification in question for ready reference: 13 -A. Levy of turnover tax. -(1) Every registered dealer and every dealer who is liable to get himself registered under Sec. 3, and whose total turnover in a year exceeds three lacs rupees, whether or not the whole or any portion of such turnover is liable to tax under any other provisions of this Act, shall be liable to pay turnover tax, from such date and at such rate as may be notified by the State Government but not exceeding ten percent of his gross annual turnover. (2) No tax under Sub -section (1) shall be payable on that part of turnover which relates to: - (i) sale or purchase of exempted goods; (ii) sale or purchase of goods in the course of inter -State trade or commerce; (iii) sale or purchase of goods in the course of export out of the territory of India or sale or purchase in the course of import into the territory of India; (iv) all amounts collected by way of tax under the provisions of this Act or the Central Sales Tax Act, 1956 (Central Act 74 of 1956); (v) all amounts allowed to dealers in respect of goods returned to the dealer when goods are taxable on sales provided that the goods were returned within a period of six months from the date of delivery of the goods and the accounts show the date on which, and the amount for which, refund was made; (vi) all amounts realised by a dealer by the sale of his business as a whole; and except as provided above, no other deduction shall be made from the gross turnover of a dealer for the purpose of this section. (3) For the purpose of assessment, collection and refund of tax levied under this section, the provisions pertaining to assessment, collection and refund under other provisions of this Act and Rules made thereunder shall mutatis mutandis apply. 15. Exemption of tax. -Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette, exempt fully or partially, whether prospectively or retrospectively from tax the sale or purchase of any goods or class of goods or any person or class of persons, without any condition or with such conditions as may be specified in the notification.;