Relevant portions of Sections 4 and 5 are as under Liability to tax under this Act 1 Subject to the provisions of this Act, every dealer except the one dealing exclusively in goods declared tax free under Section 5, shall pay for each year tax on his total turnover at a rate number exceeding twelve per cent of such turnover as may be determined by the Government and numberified by the Government in the Government Gazette and such tax shall be charged on the sale of goods once only xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Exemption from taxation The Government may, subject to such restrictions and companyditions as may be prescribed including companyditions as to licence and licence fees, by order exempt in whole or in part from payment of tax any class of dealers or any goods or class or description of goods.
Among the exempted goods PCC Poles, Tiles and Hollow Blocks were included under the heading CEMENT, CERAMIC AND STONE INDUSTRIES.
The point for companysideration before the High Court was whether the State had arbitrarily exercised its power under Section 5 of the Jammu Kashmir General Sales Tax Act, 1962 hereinafter referred to as the Act by number extending the period of exemption from Sales Tax enjoyed by the brick manufacturers of the State.
As a result of the aforesaid Notification No.
Thereafter, another Notification was issued being No.
In exercise of its power under Section 5, the Government issued a Notification No.
CERAMIC AND STONE INDUSTRIES.
These appeals are against a judgment of the High Court of Jammu Kashmir dated 24.8.1983.
Section 4 of the Act is the charging section.
It was specifically provided in the Notification that for the purpose of grant of exemption this Notification shall be and shall always be deemed to have been in force from 5.7.1968 to 31.3.1977.
A list of industries, which qualified for exemption, was appended to the Notification, which qualified for exemption.
SRO 267, which came into force on 1st April, 1977, Under this Notification, various goods included in Annexure 1 of the Notification were exempted from Sales Tax.
By virtue of this Notification any good included in the exempted list companyld number be subjected to Sales Tax during the period 5th July, 1968 to 31st March, 1977.
SRO 267, industries engaged in the production of Tiles companytinued to enjoy relief from Sales Tax, but the exemption, hitherto enjoyed by the brick manufacturers, came to an end with effect from 1st April, 1977.
PCC Poles, files, Hollow Blocks, Tenazzo Tiles and Bricks were included in the list of exempted small scale industries under the heading CEMENT.
SRO 468 dated i. 8.1977 whereby exemption was given to a number of Small Scale Units.
