(1.) THE point that arises before this Full Bench in these two cases is as follows: "Whether the State of Kerala is,or is not,entitled to levy sales tax under the Kerala General Sales Tax Act,1963,on the purchases of raw cashewnuts made by the petitioners,out of which cashew kernel is extracted,and exported to foreign countries,in view of the provisions of S.5(3)of the Central Sales Tax Act,1956;and,whether the export of the cashew kernel obtained out of the cashewnut with shell purchased by the petitioners,would amount to export of 'those goods 'which had been purchased."
(2.) THESE two matters have been referred to a Full Bench by a Division Bench consisting of one of us,( Paripoornan,J.) and Nayar,J.by a common order.It is pointed out in the referring order that the decision of the Division Bench of this Court in State of Kerala v.Sankaran Nair(( 1986)63 STC225(Ker.) ),requires reconsideration inasmuch as it has overlooked two earlier Division Bench decisions of this Court.It is also stated that a new trend hag been set by the Supreme Court in a catena of recent cases, - in particular - Dy.Commissioner of Sales Tax v.Pio Food Packers(( 1980)46 STC 63(S.C.) = AIR 1980 SC 1227 ),M/s.Sterling Foods v.State of Karnataka(( 1986)63 STC 239(S.C.) ),and other cases.The question also arises whether the decision of S.R.Das,J.( as he then was)in State of Travancore - Cochin v.Shanmugha Vilas Cashew -nut Factory(( 1953)4 STC 205(SC)) holds the field in view of the trend in the recent decisions of the Supreme Court above referred to.
(3.) THE purchases of cashewnut with shell in these cases are undoubtedly liable to sales tax under S.5 of the Kerala General Sales Tax Act,1963 read with entry 31 of Schedule I.The entry relating to last purchases(and another entry relating to first sales)in the State by a dealer read as follows: Item 31.Cashewnut -with -shell At the point of last purchase in the State by a dealer who is liable to tax under section 5. Item 32.Cashew Kernel At the point of first sale in the State by a dealer who is liable to tax under section 5.
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