2008 PTD 101

Versus Rana Rashid , Nemo

Citation2008 PTD 101

CourtCustoms, Central Excise and Sales Tax Appellate Tribunal

CH. FARRUKH MAHMUD, MEMBER (JUDICIAL).--- This appeal has been directed against Order-in-Appeal No. 28/06 whereby the learned Collector (Appeals) has upheld the Order-in-Original No.06/05, dated 24-12-2005 and the recovery of sales tax of Rs.3,07,320 leviable on cotton seed oil and Rs.6,501 leviable on oil dirt along with additional tax and penalty of Rs.3,98,927 was ordered.

2. It is contended by the learned counsel that appellant was registered, being manufacturer, vide certificate of registration, dated 9-10-1999. However, subsequently the appellant was de-registered. In this regard he has placed on file a computer print out showing de-registration. It is contended on behalf of the appellant that total sales of cotton seed oil worked out by the department were Rs.20,48,800 which are definitely less than Rs.5 million. It is submitted that the appellant unit is exempt from levy of sales tax in terms of entry No.42 of the 6th Schedule of Sales Tax Act, 1990, wherein it is clearly mentioned that supplies made in Pakistan by the manufacturer, whose annual turnover from taxable supplies made in any tax period, during the last 12 months ending any tax period does not exceed Rs.5 million, is exempt as per provisions contained in section 13(1) of the Sales Tax Act, 1990.

3. The respondent appeared at one stage and filed parawise comments. However, absented at the later stage. The respondent was issued notice `parvee' for today, but no body has turned up, hence the respondent has been proceeded ex parte.

4. I have perused the record and heard the arguments of the learned counsel for the appellant. The respondent department had made out a case on the basis of electricity units consumed and as per their calculation value of the cotton seed oil supplied amounted to Rs.20,48,800 only. The appellant has claimed exemption under section 13(1) of the Sales Tax Act, 1990 read with entry No.42 of the 6th Schedule. Admittedly, the value of supplies is less than Rs.5 million. The appellant is, therefore, found entitled to exemption. I do not find any justification to tax the appellant. In view of above discussion, the appeal stands accepted and orders passed by the lower forums are hereby set aside.

H.B.T./149/Tax(Trib.) Appeal accepted.