Law: Sales Tax Act, 1990

Section: 13,43,49

(SALES TAX ACT, 1990 (VII OF 1990)].....Section 13 & Sixth Schedule--Sr. Nos. 43 & 49....When sugar became sales taxable in 1998, the in-house consumption of sales taxable baggase for the manufacture of sales taxable sugar became exempt under the general exemption clause of Sr. No. 43 of the Sixth Schedule and therefore the specific exemption on baggase as was lavailable at Sr. No. 49 of the old Sixth Schedule dating prior to Finance Act, 1998 was not required any further.-- S. No. 43 (old Sr. 34 before the Finance Act, 1998) of the Sixth Schedule provides exemption from sales tax on "Partly manufactured goods if used within the same factory to manufacture goods in respect of which sales tax is leviable on their supply". Every goods, until exhausted through consumption, is a partly manufactured goods if it is capable of being used in the production of any other goods. The intention of the said serial No. 43 of the Sixth Schedule is to avoid the cascading effect of the tax, which is a cardinal principle of sales taxation in VAT-mode. The sales tax paid on every sales taxable input, except those prescribed under section 8 of the Sales Tax Act, 1990, procured by a registered person from outside for production of a sales taxable output is adjusted in the output tax or refunded in the prescribed manner with a view to avoiding the cascading effect of the tax. Similarly, the in-house production of sales taxable goods, used as inputs, are not charged to sales tax when consumed in-house for the manufacture of sales taxable outputs leading to eventual taxable supplies of such outputs and for this objective the provisions of Sr. No. 43 of the Sixth Schedule to the Act operate, When sugar became sales taxable in 1998, the in-house consumptions of sales taxable baggase for the manufacture of sales taxable sugar became exempt under the said general exemption clause of Sr. No. 43 of the Sixth Schedule and the specific exemption on baggase (as was available at Sr. No. 49 of the old Sixth Schedule dating prior to the Finance Act, 1998) was not required any further. The clarification, as given in C.B.R,'s letter C. No. 1/73-STT/96, dated 15-10-1999, is correct in law and…

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