STATE OF KERALA Vs. LEO RUBBERS

JUDGEMENT

(1.) As common questions arise for consideration in all these cases, they were heard together and disposed of by a common judgment. All these revision petitions are filed by the State of Kerala, invoking the provisions of section 41 of the Kerala General Sales Tax Act, 1963 (hereinafter referred to as "the Act"). The brief facts of the cases are as follows : STR No. 57 of 2011 is filed in respect of the assessment year 2000-01. STR No. 55 of 2011 is filed in respect of the assessment year 2001-02. STR No. 63 of 2011 is filed in respect of the assessment year 2000-01. As far as STR No. 72, 75 and 76 are concerned, they are filed in respect of the assessment years 1998-99, 1999-2000 and 2000-01, respectively. The respondents in all these revisions are assessees under the Act. They are small-scale industrial units, registered with the Industries Department. The real question which arises for consideration in all these revisions is whether the respondent-assessees are entitled to the benefit of concessional rate of tax as vouchsafed under G.O. Ms. No. 124/88/ID dated August 31, 1988. The said order is extracted below for the sake of convenience:

(2.) In these revisions, we are concerned, only with the issue arising from the operation of the third clause in the aforesaid Government Order, namely, the direction that tax need be paid only at concessional rate, i.e., at three per cent on sale of finished rubber products produced by the factories in Kerala. The following are the questions of law raised in these revisions:

(3.) Originally, the assessments were completed by the assessing officer, rejecting the contentions of the respondents. The first appeals filed by them were unsuccessful. The Appellate Tribunal, however, allowed their appeals and found that they were entitled to the benefit of concessional rate of tax in tune with G.O. Ms. No. 124/88/ID dated September 31, 1988. The State carried the matter in revision before this court. This court, in the revisions, took the view that G.O. Ms. No. 124/88/ID dated August 31, 1988 is essentially meant for new industries. The Division Bench further held that in the aftermath of subsequent notifications, the assessees would not be entitled to claim the benefit of concessional rate of tax provided under G.O. Ms. No. 124/88/ID dated August 31, 1988. The matter was remanded to the Tribunal. Against the said judgment, the assessees carried the matter before the apex court and the apex court remanded the matter back to the Tribunal. The relevant portion of the said order is extracted below: