ARCKATHARA ELASTOMERS Vs. STATE OF KERALA

JUDGEMENT

(1.) The question raised is whether the Petitioner is entitled to concessional rate of tax on purchase of natural rubber used for rubber backing of polypropalin rubber mats done on job work basis. We have heard Sri. Anilkumar, counsel appearing for the Petitioner and Government Pleader Sri. Mohammed Rafiq for Respondent.

(2.) During 2004-05, Petitioner undertook the work of rubber backing of polypropalin rubber mats for another manufacturer. Rubber backing done by the Petitioner is admittedly an industrial activity involving manufacturing process. Petitioner claimed concessional rate of tax at 6% on the purchase turnover of rubber used in the job work as above under notification, S.R.O. No. 1091/99. Even though in the original assessment completed for 2004-05 concessional rate was granted, the same was later withdrawn by making a tax escaping assessment under Section 19(1) of the K.G.S.T. Act for the reason that a job worker who is hot engaged in the manufacturing of products is not entitled to concession. The order of disallowance was confirmed in two level appeals and hence this Revision is filed before this Court against the order of the Tribunal. Relevant portions of the notification are extracted hereunder: