VICTORY PLYWOOD INDUSTRIES Vs. STATE OF KERALA

JUDGEMENT

(1.) The matter arises under the Kerala General Sales Tax Act, 1963 (hereinafter referred to as the Act ). The petitioners in O.P.Nos.305/2000. 2774/2001 & 1180 of 2000 respectively are the appellants in the above writ appeals. The learned single Judge by a common judgment in a batch of writ petitions O.P.Nos.25907/99, 11405, 305, 1180, 27247 & 31253/2000, 29562, 2774, 16548 & 16591 of 2001 dismissed all the writ petitions. Writ appeals are seen filed only in three cases. Though the appellants in these three appeals are different since the issue raised is common in all these appeals they are being disposed of together by a common judgment.

(2.) We have heard learned counsel appearing for the appellants and the learned Government Pleader appearing for the respondents. The appellants are small scale industrial units engaged in the manufacture and sale of various products. They are also registered dealers under the act.

(3.) The Government of Kerala, in exercise of the powers vested under Section 10 of the Act, issued Notification S.R.O.No.1728 of 1993 making a reduction in the rate of tax payable under the Act on certain goods and by persons or units specified in the various schedules to the Notification. This notification has been subjected to various amendments by extending concessional rates of tax to different class of persons or units on sale of their products. One such notification was S.R.O.No.429 of 1995 by which a new item-item 8 was, inter alia, added in schedule IV stating that small scale industrial units whose total turnover does not exceed Rs.50 lakhs need pay only 4% tax on the sale of goods manufactured by them within the State. This notification was to be effective from 1.4.1995. Another notification S.R.O.No.585 of 1996 dated 29.7.1996 was issued again amending S.R.O.1728/93 whereby an Explanation was, inter alia, added to item No.8 in schedule IV below the entry in column 2 which states that where the turnover of the unit exceeds the limit of Rs.50 lakhs, during the first year in which the turnover crosses the limit, the higher rate will be applied only on the turnover above Rs.50 lakhs. This Explanation was given retrospective operation with effect from 1.4.1995.