NAV BHARAT RICE AND GENERAL MILLS HANUMANGARH-JUNCTION Vs. COMMERCIAL TAXES OFFICER SPECIAL CIRCLE HANUMANGARH

JUDGEMENT

(1.) THESE two revisions are filed by the came dealer registered under the Central Sales Tax Act arising out of common order passed by the Rajasthan Tax Board, Ajmer in Appeal Nos. 477/96/cst/ganganagar and 478/96/cst/ganganagar relating to the assessment periods 82-83 and 85-86. The appeals were decided by the Board on 16. 1. 99.

(2.) THE question relates to levy of Central Sales Tax on the rice sold by the Dealer in the course of inter-State trade or commerce, where the Dealer has paid tax on paddy, from which rice is manufactured, at the rate of 3% under the Rajasthan Sales Tax Act. At the time of assessment the assessee has claimed that he is entitled to exemption from the payment of tax on rice sold in the course of inter-State trade or commerce in the present case because he is governed by notification No. 324 F. 4 (67)FD/gr. IV/76-25 dt. 8. 9. 1976 issued u/s. 8 (5) of the Central Sales Tax Act, 1956 (Annexure/6 ). THE assessee has claimed that he has paid full tax prescribed under the Rajasthan Sales Tax Act on the paddy at the rate of 3% without reference to Section 5c of the Rajasthan Sales Tax Act. He is not liable to pay any tax on the sale of rice sold in the course of inter-State trader or commerce under the aforesaid notification.

(3.) HERE it may be noticed that u/s. 5c of the State Act the concessional rate of tax on raw material was 1% until 3. 3. 82 and thereafter it was substituted by 2% vide Act No. 14 of 1982. With effect from 8. 3. 88, by Act No. 3 of 1988 the concessional rate u/s. 5c of the RST Act was increased to 3% from 2%. Entire period in question is within the span when general rate of tax on paddy was 3%. Under notification No. 23 referred to above and concessional rate of tax u/s. 5c was 2% of the turn over of paddy as raw-material for procuring rice.