STATE OF KERALA Vs. POABS GRANITES

JUDGEMENT

(1.) THE questions of law sought to be answered in this revision filed under Section 41 of the KGST Act are as given below: (A) Whether the Appellate Tribunal is right in law in treating M-sand sold by the assessee in par with granite metals to extend the benefit of compounding method assessment to the assessee under Section 7(1)(b) of the KGST Act? Arising out of T. A. No. 103 of 2006 of Commissioner of Kerala Agricultural IT & STAT, Tvm. (B) Has not the Appellate Tribunal misconstrued, rather over-read the scope of Section 7(1)(b) in the matter of extending compounding facility to the assessee in respect of its sale of M-sand and granite metals? (C) Is not on a true construction of the relevant provisions "M-sand" a distinct commodity falling under Entry 128 of the First Schedule from "granite metals" an item falling under Entry 70 and that granite metals alone is covered by Section 7(1)(b) of the Act for the option for compounding?

(2.) THIS revision has been preferred at the instance of the Government, being aggrieved of the order passed by the Appellate Tribunal, in favour of the assessee, giving the benefit of compounding to both the 'main product' (granite metal) as well as to the 'by-product' (M-sand) after turning down the contention raised from the part of the Revenue, that the assessee could have compounded the tax only in respect of the 'main product' and not the 'by-product'.

(3.) HEARD the learned Government Pleader appearing for the revision petitioner and the learned counsel appearing on behalf of the respondent.