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Assessee, rice manufacturer isn't liable for sales tax & purchase tax on paddy.
Assessee, rice manufacturer isn't liable for sales tax & purchase tax on paddy.
Assessee an rice manufacturer exempted from sales tax on sale of rice and bran. Assessing authority levied purchase tax U/S 5A on paddy purchased by assessee from agriculturists/unregistered dealers. High Court followed Supreme Court judgement rendered in Peekay Re-Rolling Mills (P.) Ltd. v. Asstt. Commissioner 2007 where assessee was not liable to purchase tax on paddy U/S 5A. Hence, here also assessee is exempted from purchase tax on paddy.-007558
1. Assessee, a rice mill, was engaged in manufacture of rice.
2. It was eligible for exemption from sales tax on sale of rice and bran.
3. Assessing Officer levied purchase tax under section 5A on the paddy purchased by the assessee from the agriculturists/unregistered dealers.
4. Tribunal followed the judgement of the Supreme Court rendered in the case of Peekay Re-Rolling Mills (P.) Ltd. v. Asstt. Commissioner [2007] 15 KTR 273 allowed the appeal of the assessee holding that the Assessing Authority could not levy tax on purchase of paddy under section 5A.
5. On revision by High Court. 6. HELD- YES, assessee was not liable to pay purchase tax on paddy under section 5A to any agriculturist/unregistered dealers. [In favour of assessee]
Case Reference- State of Kerala v. Vasantha Modern Rice Mill
HIGH COURT OF KERALA (FULL BENCH)
[2015] 58 taxmann.com 352 (Kerala)
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