KISHINDAS AGENCIES Vs. STATE OF MYSORE

JUDGEMENT

(1.) These revision petitions preferred by an assessee under S.23(1) of the Mysore Sales Tax Act, 1957, hereinafter called the Act, relate to the assessment years 1967-68 and 1968-69. The assessee manufactures 'Felt Washers' which are used as components in the manufacture of 'Micro Filters'. During the assessment years, the assessee sold the 'Felt Washers' manufactured by him to M/s. Motor Industries Co. for manufacture of 'Micro Filters'. Before the assessing authority the assessee claimed that on his turnover relating to sales of 'Felt Washers' he is liable to pay tax only at the concessional rate provided under S.5(3A) of the Act, which claim was accepted by the Additional Commercial Tax Officer who passed the assessment orders.

(2.) However, the Deputy Commissioner of Commercial Taxes in exercise of the powers conferred by S.21 (2) of the Act, revised the orders of the Additional Commercial Tax Officer and held that the assessee is not entitled to the benefit of S. 5 (3A), but is liable to pay tax at the rate provided under S.5(1). Appeals preferred by the assessee against the said orders to the Mysore Sales Tax Appellate Tribunal having been dismissed, he has preferred the above revision petitions.

(3.) It was contended by Sri Sarangan, learned Counsel for the assessee that the view of the law on the basis of which the Commissioner revised the orders of the Additional Commercial Tax Officer is erroneous and that the assessee is entitled to the concessional rate of tax under S.5(3A). The question for decision in these revision petitions is, whether the assessee is entitled to the benefit of S.5(3A) of the Act. The said sub-section reads: