PINTU SPICES Vs. STATE OF KERALA

JUDGEMENT

(1.) Whether the rejection of the application submitted by the petitioner for exemption from payment of sale tax in respect of 'chilly powder' and 'coriander powder' as per Ext. P5 and modified as per Ext. P6 placing reliance on 'Ext. P7 SRO' is correct or proper, is the moot point involved in this Writ Petition.

(2.) The petitioner is a partnership firm, constituted by three women (one, a minor represented by guardian) as the partners and registered as an 'SSI unit' before the 4th respondent as borne by Ext. P1 certificate of registration. The said industrial unit was set up in the year 1991 and commercial production was set up in the very same year. The product manufactured as shown in Ext. P1, is 'curry powder', which was later amended including / incorporating, chilly powder, coriander powder, turmeric powder, sambar powder, meat masala and pickle powder. It is stated that, by virtue of the policy of the Government, the petitioner's industrial unit being owned and operated exclusively by women, has been classified as a project under the 'Women Industrial Programme' (WIP) as reflected from Ext. P3 certificate issued in this regard. By virtue of the classification as above, such units forming part of 'WIP' are entitled to tax discount and various other benefits are provided by the Government from time to time. Accordingly, taking note of the contentions of the petitioner, the petitioner being a WIP unit, Ext. P3 exemption was given from collecting payment of any sales tax for a period of 7 years from 20/11/1991 to 19/11/1998. It is stated that the petitioner enjoys the benefit of Ext. P3 exemption and the petitioner had been producing and marketing the products without collecting any sales tax.

(3.) While so, a notice was issued in the year 1996 stating that some of the items marketed by the petitioner were exigible to tax and required to satisfy the liability. Immediately the petitioner approached the Government by filing petitions dated 27/08/1998 and 12/08/1998 and after considering the same, the petitioner was instructed by the Government as per Ext. P4 communication dated 15/09/1998, to apply for amendment of the SSI registration certificate for including the items, for which sales tax exemption was requested and then to apply for ST exemption for those items.