Law:

Section:

(a) Interpretation of statutes--- ----Fiscal statute---Charging provision of a fiscal statute must be strictly construed and applied. (b) Taxation--- ----No tax can be imposed, levied and recovered beyond the scope, ambit and the parameters of the charging provisions of a particular fiscal statute. (c) Sales Tax Act (VII of 1990)--- ----Ss.3, 2(46) & 7---`Taxable supply', `taxable activity' and `value of the supply'---Provision of S.3, Sales Tax Act, 1990 enables the charge of sales tax on the "taxable supply" made by a registered person in the course of furtherance of any "taxable activity" carried on by him upon the "value of supply"---Melting and the conversion of the scrap into ingots/billet is a "taxable activity" on, part of the melters and when such product is supplied, it falls within the purview of `taxable supply' and there is no reason to give any other meaning to the `value of supply' as defined in S.2(46) of Sales Tax Act, 1990---Notwithstanding the sales, etc, of the scrap and that of manufactured item by the registered person as an independent taxable activity, one fails to comprehend the argument that on account of the, above, the tax should be charged from them only on the basis of value addition---No provision of the Sales Tax Act, 1990 exists on the basis of which it can be held that if the sales tax has been paid on the raw material of whatever nature it may be the sales tax on the final/finished product shall be minus the value of the material, meaning thereby that the tax shall be restricted to `value addition' only---Procedure for determining `tax liability' is provided by S.7 of the Act, which clearly specifies that a registered person shall be entitled to deduct input tax from output tax, that is due from him in respect of the tax period---Neither S.7, Sales Tax Act, 1990 nor any other provision of the Act allows that in case any taxable supply is charged at zero rate and is used as a raw material for another taxable supply, the value of the later supply shall be restricted to the value addition only--Zero rated tax cannot be equated to the actual payment of tax, but is notional in nature---Present case thus does not fall within the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492