DUROFLEX COIR INDUSTRIES Vs. ASST COMMISSIONER

JUDGEMENT

(1.) The factory belonging to the petitioner and situated at Alleppey is a Small Scale Industrial Unit (Vide Ext. P1). Rubberised coir is manufactured there. Rubber latex is one of the raw materials used for manufacturing rubberised coir. How this product is manufactured is succinctly stated in para 2 of the O.P. which is extracted hereunder:--

(2.) The rubber purchased by the petitioner as raw material is liable to be taxed under entry 161 of Schedule I of the Kerala General Sales Tax Act, for short The Act at the rate of 6%.

(3.) The petitioner however, is entitled to the benefit of the Notification, S.R.O. 585/80 and as such they can be made liable to pay tax only at the reduced rate of 3%, the counsel submits. The assessing authority, on the other hand, contends that the petitioner is not entitled to the benefit of this Notification because his product cannot be said to be a rubber product, although it is a Small Scale Unit, recognised by the Department of Industry.