A V THOMAS AND CO LIMITED OUTCHERLONEY VALLEY ESTATES 1938 LIMITED COIMBATORE Vs. DEPUTY COMMISSIONER OF AGRICULTURAL INCOME TAX AND SALES TAX TRIVENDRUM:DEPUTY COMMISSIONER OF AGRICULTURAL INCOME TAX AND SALES TAX TRIVENDRUM

JUDGEMENT

(1.) This appeal by certificate of the High Court of Kerala raises the question of the taxability of sales of tea under the Travancore-Cochin General Sales Tax Act, hereinafter termed the Act, and the Rules made thereunder. The assessment period is 1952-53 and the turnover was of a sum of Rs. 3,77,644/- on which a tax of Rs. 5900/11/- was levied. The appellant before us is the assessee company and the respondent is Deputy Commissioner of Agricultural Income-tax and Sales tax.

(2.) Mr. A. V. Viswanatha Sastri on behalf of Outcherloney Valley Estates (1938) Ltd. has applied for intervention on the ground that in case of that company also the State of Kerala has, on similar facts, levied sales tax on certain transactions, that the High Court of Kerala has upheld the taxability of the transactions relying on the judgment which is under appeal in the present case, and that the intervener has obtained special leave to appeal against that judgment and the records are under print. In view of these circumstances we have allowed that company to intervene in the present appeal.

(3.) The assessment was made on March 30, 1955 under R. 33(I) of the Act on the ground that the sales of tea had escaped assessment. The appeal against that order was unsuccessful and thereafter a further appeal was taken to the Sales tax Appellate Tribunal which by its order dated August 12, 1957, held that the ban under Art. 286 (1) (a) of the Constitution on sales which are outside the State applied in regard to the sales of 'full lots' and therefore remanded the case to the Sales Tax Officer. Against that order a revision was taken to the High Court which held that the decision of the Appellate Tribunal in regard to the applicability of Article 286(1)(a) was erroneous and therefore the sales were subject to sales tax under the Act. It is against that judgment and order that the assessee company has come to this court on a certificate of the High Court.