PRIMA INDUSTRIES LTD Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) This is an appeal filed under Section 40 of the KGST Act challenging Ext.P8 order of the Commissioner of Commercial Taxes declining to entertain an application for clarification filed by the appellant under Section 59A of the KGST Act. The appellant, a medium scale industrial unit, applied for sales tax exemption on the products manufactured by it. Based on the recommendation issued by the Kerala State Industrial Development Corporation Ltd., the financing agency, the Deputy Commissioner of Commercial Taxes issued exemption certificate granting exemption on "deoiled cake and solvent extracted and refined oil". This order is issued on 2.8.1999.

(2.) We are of the view that the Commisisoner is right in declining to clarify the exemption certificate as he has no powers under Section 59A of the Act to clarify the exemption certificate issued by concerned authority under SRO 1729/93. Section 59A authorises the Commissioner to clarify only the issues referred to therein, which do not include sales tax exemption certificate issued under any notification issued under Section 10 of the Act. The items on which the Commissioner can clarify under Section 59A are as to whether (a) any person is a dealer; or (b) any transaction is a sale; or (c) any particular dealer is required to be registered; or (d) any tax is payable in respect of any sale or purchase, or if tax is payable, the point and the rate thereof; or (e) any activity carried out in any case amounts to or results in the manufacture of goods. It is clear from the above that the clarification sought for by the appellant on the exemption certificate issued does not fall under any of these items. Further it is to be noted that alternate remedy by way of appeal is provided against exemption certificate before the appellate committee under the Manual of Sales Tax exemption issued by the Govt. The opening words of Section 59A itself make it clear that wherever appellate or revisional remedy is there before any Court or Tribunal or before any authority, the Commissioner is not entitled to interfere with such matters in proceedings under Section 59A of the Act. We are therefore uphold Ext.P8 order of the Commissioner and dismiss the appeal filed by the appellant. However, it is open to the appellant to file appeal against impugned sales tax exemption certificate obtained before the concerned authority and if there is delay in filing the appeal on account of pendency of this appeal from October 2002 onwards, then such authority will condone the delay and decide the matter on merits.