ACC LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The appellant entered into an agreement on 08.04.1993 with Cochin Cement Limited - a company registered under the Companies Act, 1956. The relevant clauses of the agreement are as follows :-

(2.) On the basis of the aforesaid Agreement, the appellant - assessee put forth his stand before the Assessing Officer that his case was covered under Section 5(2) of the Kerala General Sales Tax Act, 1963 (for brevity, "the Act") and, therefore, the sale effected by the Cochin Cement Limited should be treated as the first sale. The Assessing Officer, on the basis of Intelligence Report and other materials brought on record, came to the conclusion that the Cochin Cement Limited had been manufacturing the cement and handing over the same to the assessee. On a perusal of the impugned orders, it is noticeable that the report of the concerned intelligent officer has met with approval up to the revisional stage. To have a complete picture we may usefully reproduce the finding recorded by the assessing officer in the order of assessment:-

(3.) Be it noted, the order of assessment has received the stamp of approval by the higher authorities as well as by the High Court. In this backdrop, we may proceed to analyse the statutory scheme. Section 5(1) of the Act, which is the charging Section, reads as follows:-