NOOR METALS Vs. STATE OF KERALA

JUDGEMENT

(1.) THE matter arises under the Kerala General Sales Tax act, 1963 (for short 'the Act' ).

(2.) THE assessee is the revision petitioner. THE State of kerala is the respondent. THE assessment year concerned is 1995-96. THE assessee is a dealer in iron and steel. During the assessment year the assessee sold a lorry which was being used for the transport of iron and steel. THE assessee had purchased a chassis from M/s. M. G. F. (India) Ltd. on 25. 6. 1992 (evidenced by Annexure F) after payment of tax. THE assessee had also built body using materials purchased from registered dealers within the State. THE body was mounted on the chassis and thereafter it was being used as a lorry. This lorry was sold by the assessee for a value of Rs. 3,00,000/ -.

(3.) THE learned Government Pleader appearing for the respondent, on the other hand, submitted that under Entry 86 of the First schedule to the Act motor vehicle is a different commercial commodity from chassis or body mounted on the chassis and therefore notwithstanding the fact that the chassis and the body which are used for making lorry had suffered tax at the point of first sale in the State still the sales turnover of the lorry has to be assessed at the hands of the assessee since it is a totally different commercial commodity. THE Government Pleader in support of his contention relied on the decision of this Court in Rane (Madras) Ltd. v. State of Kerala (1967 KLT 890 (FB)) and another decision of the Division Bench of this Court in the judgment dated 11. 10. 2001 in T. R. C. No. 37 of 2001 and the decision of the supreme Court in M/s. MSCO Pvt. Ltd. v. Union of India & Ors. (AIR 1985 SC 76 ). THE Government Pleader on the basis of these decisions submitted that the authorities and the Tribunal were perfectly justified in rejecting the claim of the assessee.