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Interpretation of Statutes----Deeming provision-Construction (Section 5, Jammu and Kashmir General Sales Tax Act, 1962). Jammu and Kashmir General Sales Tax Act, 1962--Section 5- Granting tax exemption--Procedure-Whether Government Orders 159 and 414 deemed to be exemption notification-Tax exemption-Kinds of-- Person claims exemption-Duty of Jammu and Kashmir General Sales Tax Act, 1962--Section 5-Tax exemption by Govt. Orders 159 and 414 -"Will be granted exemption" and "will be exempted"-Meaning-Whether same. Jammu and Kashmir General Sales Tax Act, 1962--Section 5- Government Order 159 dated 26.3.1971, whether a follow up action of Government to its notification in SRO 214 dated 3.6.1971 issued under section 23 of the Jammu and Kashmir Urban Immovable Property Tax Act, 1962. Claim of Period of exemption for 10 years on the ground of promissory estoppel-Reference to 10 years in Finance Minister's speech and the Brochure dated 7.9.1978-Whether benefit under Govt. Orders 159 and 414 continues for 10 years. Exemption-whether Govt. Orders 159 and 414 superseded by SRO 195 dated 31.3.1978- Taxability of Vanaspati and edible oils under notification SRO 448 dated 22.10.1982. Section 4(1)--Scheme of-Levy of single point taxation-Tax exemption under Govt. Orders 159 and 414 whether covers entire series of sales of the goods manufactured-Applicability of notification SRO 448. Central Sales Tax Act, 1956 : Sections 6(1), 6(1-A), 15,8 (2-A}-Tax liability under-Inter State sale-When takes place-Imposition of tax on sale of declared goods by State under State Law in inter state sale-CST if paid. to be reimbursed - Overriding effect of section 8(2-A)-Scope of-Applicability of Section 6(1-A). Jammu and Kashmir General Sales Tax Act, 1962 . Section 5---Govt. Orders 159 and 414-Benefits under-Facts to be proved by dealer intention of. Govt. Orders 159 and 414-Whether superseded by SRO 80/82. Jammu and Kashmir General Sales Tax Act, 1962-Section BBC Application of. CA. No. 2309/1989 "The appellant-a public limited company-was manufacturing Rosin, Turpentine and Rosin Derivatives and was carrying on business at Bari Brahmana and Jammu Tawi. On 20.1.1981, the Assessing Authority assessed the appellant-company under the Central Sales Tax Act, for the year ending 30.6.80. On 22.2.1981 an assessment order under section 10 of the Act was made. A penalty order was also made. The appellants challenged the order of the Assessing Authority before the High Court filing, Writ Petition No. 87 of 1987, contending that they were exempt from payment or sales tax under the Central Sales Tax Act, 1956 and the Jammu & Kashmir General Sales Tax Act, 1962, on the finished goods produced by them for a period of five years commencing from 8th November, 1979, in terms of the Government Orders No. 159-Ind. dated 26.3.1971 as amended by Government Order No.414- lnd. dated 25th August, 1971 read with Section 8(2A) or the Central Sales Tax Act; that the Government represented and announced a package or incentives for large and medium scale industries grant or exemption from sales tax both on the raw materials purchased by the industries and the sale of their finished products; and that the Government was estoppel from charging sales tax. The High Court dismissed the Writ ·Petition holding that the two Government Orders were only declarations of an intention to exempt from payment of sales tax and that they were not exemption notifications under section 5 of the General Sales Tax Act and that the appellants failed to prove the factual foundation for invoking the principle of promissory estoppel. Against the High Court's decision by special leave C.A.No. 2309 of 1989 was filed by the appellant-company. CA No. 2310 of 1989 The appellant-company had filed a miscellaneous petition, after the judgment in the W.P.No. 87 of 1987 (the writ petition of the High Court against which C.A.No.2309 of 1989 was filed) for permission to file reply affidavit on the ground of that the documents produced at the time of hearing needed explanation. The High Court dismissed the Misc. Petition as it was belated and the judgment in the writ petition was delivered relying on the materials placed on record. CA. No. 3148-50 of 1989 The appellant-partnership firm was manufacturing Vanaspati Ghee. It was assessed for the period from 2.9.1981 till 30.9.1981 under the Jammu & Kashmir General Sales Tax Act. The appellants moved the High Court in a writ petition (W .P.No. 52 of 1982) to quash the assessment order, contending that the Government order 159-lnd. dated 26.3.1971 as amended by Government Order 414-lnd. dated 25.8.1971 exempted the sales of the finished product of Vanaspati Ghee from sales tax and that the Government was estopped from collecting tax. When the Writ Petition (W.P .No. 52 of 1982) was pending, an assessment order was made on 14.11.1984 for the assessment year ending 30th September, 1982, including the period 2nd September to 30th September, 1981 (which was questioned in W.P.No. 52 of 1982). The assessment order dated 14.11.1984 was challenged by the assessees appellants in the writ Petition No. 822 of 1984. During the pendency of the writ petitions certain other Government Orders were passed and certain assessment orders for the subsequent periods were passed and those were questioned in the Writ Petition No. 711 of 1987. The assessees contended that Government Order No. 159-Ind. dated 26.3.1971 and Government Order 414-Ind. dated 25.8.1971 were exemption orders referable to section 5 of the Jammu & Kashmir General Sales Tax Act. The respondents contended that the said Government orders were not exemption orders under section 5 of the General Sales Tax Act and that there was not factual foundation for the plea of promissory estoppel. The High Court dismissed all the three writ petitions by a common order, against which Civil Appeals 3148-50 of 1989 were filed. CA No. 3151 of 1989 : The appellant-assessee filed a writ petition praying to quash certain notices issued under section 14 of the Central Sales Tax Act and for a declaration that the Vanaspati Ghee manufactured by them was exempt from payment of lax upto January, 1992, i.e., for a period of 10 years from the date from which they started their commercial production as per the Government Order 159-Ind. dated 26.3.1971 and E Government Order No. 414-Ind. dated 25th August 1971 as orders exempting their goods from sales tax under Section 5 of the Jammu & Kashmir General Sales Tax Act. F The Writ Petition was also dismissed against which C.A.No.3151 of 1989 was filed by special leave. The assessee contended that the exemption from payment of tax was extended from 5 years to 10 years and the Government was bound to give the exemption for 10 years on the ground of promissory estoppel; that SRO 448 which superseded the exemption granted under the Govt. Orders was ultra vires and that the SRO 448 had no effect of superseding exemption granted under the G.0.159 and 414; and that the exemption for 5 years granted under the Government Orders could not be withdrawn on the ground that SRO 80/82 was prospective in operation and also on the ground of promissory estoppel. The State contended that even if the sale of a particular commodity was exempted from payment of tax under the local Act, the dealer A selling the same in inter-state trade or commerce would be liable to pay Central Sales Tax under the provisions of Section 6(1A) of the Central Sales Tax Act; that if Section 6(1A) of the Central Sales Tax Act was applicable to a particular transaction of sale, Section 8(2-A) of the General Sales Tax Act would not be applicable to that transaction; that the conditions that the industry should have been set up and commissioned subsequent to the Government Orders 159 and 414 and the commodity sold in order to claim the exemption under the Government Orders, should be those manufactured by that industry were the conditions or specified circumstances within the meaning of the Explanation and, therefore, the appellants in C.A.Nos. 2309, 2310/89 were not entitled to any exemption under Section 8(2-A) of the Central Sales Tax C Act; that the Government Orders were superseded by SRO 80/82 and Vanaspati Ghee was made liable to tax at the rate or 8 percent; that the goods manufactured by the appellants in C.A.Nos. 2309, 2310/89 were also made taxable as falling under the residuary item at the rate of 8 per cent; that in the assessment order relating to Assessment Year 1981-82 for the period from 1.9.1981 to 30.8.1982 in the case of appellants in C.A. Nos. 3148-3150 of 1989 there was a finding that the assessees collected sales tax in respect of their sales turnover for which the exemption was now claimed and that under Section 8-B of the J&K General Sales Tax Act the said amount was refundable to the Government. |
