RELIANCE TRADING COMPANY Vs. STATE OF KERALA

JUDGEMENT

(1.) THE issue involved in these appeals is identical and hence they can be decided by a common judgment. We shall take the facts in Civil Appeal No. 6621 of 2000 for deciding the issue.

(2.) THE period involved is 1986-87 to 1993-94: the question is whether cotton based tarpaulin is exigible to sales tax under the Kerala General Sales Tax Act, 1963 ("KGST Act")

(3.) THE rate of tax at the material time was 8% at the point of first sale. This situation continued till 31.7.1991. By the Kerala Finance Act, 1991, the commodity "PVC cloth" was deleted from the Third Schedule with effect from 1.8.1991 from the relevant entry. This situation continued till 31.3.1992. Under the Kerala Finance Act, 1992 a new Entry 106 read as "Rain coat, tarpaulin and products of water proof cloth, rexine and PVC cloth" was added. THE rate of tax was also increased to 10% without any change in the point of levy.