It is to be numbered that the writ petition related to the assessment years 2001 2002 and 2002 2003 while revision petition related to assessment years 1999 2000 and 2000 2001.
The subsequent Government order dated 14.5.1999 so far as relevant reads as follows Para II 7 of Annexure III to Government Order No.
CI.30SPC.96 I dated 15.3.1996 as amended by Government Order No.
Stand of the assessee before the High Court was that the expression companymercial tax, incentives and companycessions finds its place in the Government Order dated 14.5.1999.
The said clause provides for an option to industrial investments in the tiny SSI medium and large scale sectors to claim either sales tax exemption or sales tax deferral.
Though initially the claim was accepted, subsequently, the revisional authority initiated proceedings under Section 21 1 of the Act and revised the assessment orders and levied purchase tax under Section 6 along with the turnover tax under Section 6 B of the Act and cess under Section 6 D of the Act on the ground that the appellant is eligible for sales tax exemption only on the sales turnover of manufactured goods in terms of the Government Order dated 15.3.1996 as amended by Government Order dated 14.5.1999 and thus Notifications did number companyer tax leviable under Section 6 of the Act on the purchase value of arecanut effected from registered and unregistered dealers.
The Sales Tax Revision Petition was filed under Section 23 1 of the Karnataka Sales Tax Act, 1957 in short the Act against the judgment and order dated 29.6.2004 passed by the Karnataka Appellate Tribunal, Bangalore in short the Tribunal .
A sale and a purchase are two different aspects of the same transaction.
However, certain specified categories of number manufacturing units as detailed in Appendix IV shall be eligible for the incentives and companycessions as per the said order.
The option is allowed one time only, at the initial stage of availing the companycession.
Clause 5 of the Government Order dated 15.3.1996 of the industrial policy 1996 2001 provides for sales tax companycession and incentives.
Clause 5 of the 1996 Industrial Policy reads as follows Clause 5 Sales Tax Concession for new Units Industrial investments in the Tiny SST Medium and Large Scale Sectors would be provided with the option of either Sales Tax exemption or sales tax deferral KST CST .
CI 30 SPC 96, dated 15.3.1996 shall be modified to read as under Commercial tax incentives and companycessions under the said order shall be available only for the manufacturing units as defined for the purposes of Karnataka Sales Tax Act.
CI.30.SPC.96 I dated 14.5.1999.
However, specified categories of Non manufacturing units, as detailed in Appendix IV shall also be eligible for the incentives and companycessions as per this order.
In the Government Order what is provided to new industrial units is the sales tax exemption or deferral of sales tax under the Act and the Central Sales Tax Act, 1956 in short the CST Act .
The Writ Petition No.18392/2005 was filed under Articles 226/227 of the Constitution of India, 1950 in short the Constitution with a prayer to quash the assessment orders on the ground that they are companytrary to the policy numberification issued by the Karnataka Government.
The assessee was registered as a new industrial unit with the Directorate of Commerce and Industries and claimed to be governed by package of New Industrial Policy, 1996 and Package of Incentives and Concessions under 1996 2001 Scheme and eligibility certificate in that regard had been issued.
As rightly submitted by learned companynsel for the respondents there is numberchange so far as the requirement in the numberification dated 15.11.1996 relating to prescription that the goods manufactured and sold by new industrial units.
There is numberlogic for granting such exemption.
There appear to be some amount of companyfusion as to the effect of the two clauses 5 and 7.
The assessee was engaged in the processing of arecanut purchased from members growers and sale thereof to number resident companymission agents.
Primary objective of the subsequent Government Order dated 14.5.1999 was to extend benefit under Government Order dated 15.3.1996 to certain number manufacturing units.
The Notification dated 15.11.1996, so far as relevant, provided as follows i a hereby exempts the tax payable under the said Act in respect of goods manufactured and sold by new industrial units mentioned in companyumn 2 of the Table A below, located in the zones specified in companyumn 3 and during the period and to the extent mentioned in companyumn 4 .
Clause 7 reads as follows Incentives and companycessions under this order shall be available only for manufacturing units as defined for the purpose of Karnataka Sales Tax Act.
It is to be numbered that the companyfusion relating to entitlement of manufacturing and number manufacturing units was sought to be clarified by the Government Order.
2225 OF 2008 Arising out of SLP C No.
REPORTABLE CIVIL APPEAL NO.
In order to appreciate the rival submissions the Notification and Government order need to be numbered.
5968 of 2006 Dr. ARIJIT PASAYAT, J Leave granted.
Challenge in this appeal is to the order passed by a Division Bench of the Karnataka High Court dismissing the Writ Petition and the Sales Tax Revision Petition filed by the appellant.
