Law: Sales Tax Act, 1990

Section: 3,13,entry107 ofSixth Schedule

SALES TAX ACT, 1990 (VII OF 1990) Sections: 3 & 13 - Sixth Schedule to the Sales Tax Act, 1990 - SRO 551(l)/2008, dated 11.06.2008 - Exemption - Import of iodized salt - Scope of tax - Short recovery of sales tax - Show Cause Notice - Validity - Filing of suit in High Court - FACTS This is a suit wherein the Plaintiff has impugned Show Cause Notice dated 28.03.2018 whereby, the Department has alleged short levy of sales tax for tax periods from July 2013 to June 2017 on the ground that no exemption is available to the Plaintiff under Sixth Schedule of the Sales Tax Act, 1990. ARGUMENTS Learned counsel for the Plaintiff has contended that the impugned Show Cause Notice is without lawful authority and jurisdiction; that the goods in question i.e. iodized salt is being sold in retail packing under a brand name and Plaintiff is entitled for exemption of Sales Tax under Serial No. 107 of the 6th Schedule to the Sales Tax Act, 1990, whereas, the Department is mistakenly applying Serial No.29 of the said Schedule as the Plaintiff never claimed exemption against Serial No.29; that prior to insertion of Serial No. 107 of the 6th Schedule, the said exemption was available through SRO 551 (I)/2008 dated 11.06.2008 against Serial No. 14, which qualified the exemption on import and supplies thereof, however, when this Notification was rescinded on 26.6.2014, the entry was incorporated against Serial No. 107 in the said Schedule but now the condition is not similarly worded; hence the exemption is available independently to import and supply, therefore, the impugned Show Cause Notice is without jurisdiction and bad in law; that under section 3 and 13 of the Sales Tax Act, 1990, import and supply have been dealt with separately, and therefore, the exemption under Serial No. 107 in respect of import and supply is to be read disjunctively; that in entry 107 the word "and" is to be read disjunctively as otherwise this entry 107 would remain redundant; that it is not possible that a person imports a product and then make a supply of the same thereof in retail packing; that it is settled law that in respect of interpretation of statutes absurdity is to be avoided; that in fact…

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