Law: Sales Tax Act, 1990

Section: 13,7,45A

Sales Tax Act (VII of 1990)---Ss. 13, 7 & 45-A---S.R.O. No.600(1)/1990 dated 7-6-1990---S.R.O. 697(1)/1977 dated 4-8-1977---Supplies 'of Air-Conditioning Plants more than 10HP Classifiable under PCT Heading 84.15--,-Exemption--­Conditions ---Interpretation, application and scope of S.R.O. No.600(1)/ 1990 dated 7-6-1990. The only controversy in the present case now emanating from the record, which is factual one, is in respect of alleged supply of package type Air-Conditioning plants of more than 10 H.P. during the period 1989-1990 to 1992-1993 (up to September, 1992) by the assessees in open market, which according to the department were not covered by exemption provided in the S.R.O. 600(1)/1990 due to the non-fulfilment of condition contained in the Proviso of this S.R.O. A bare reading of S.R.O. No.600(I)/1990 dated 7-6-1990 goes to show that for its applicability the word, "machinery" has been given a much wider meaning than its ordinary dictionary meaning. Further the language of this S.R.O. does not spell out any intention of law makers that its applicability is only restricted to the supplies/sales of articles which are directly made to the industrial units so as to be identifiable for intended use only with machinery and not to the supplies/sales made otherwise in open market. It is, therefore, amply clear that to avail the benefit of S.R.O. 600(1)/1990 and the other earlier S.R.O., the assessees were neither supposed to restrict their supplies/sales of articles "package type Air-conditioning plants of more than 10 H.P. classifiable under P.C.T. Heading 84.15" directly to the industrial units to ensure its intended use only with machinery nor they were under any obligation not to follow normal norms of the business/trading by appointing agents/dealers through whom supply/sale of these Air-conditioning plants could be made in open market' for its consumption within the scope of S.R.O. 600(1)/1990. Indeed, proviso to S.R.O. 600(1)/1990 imposes condition for availing of exemption that the articles are identifiable as intended for use only with machinery, but after due clarification given by the Central Board of Revenue in this regard vide their letter…

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