ARAVIND TIN INDUSTRIES Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioner is a firm. It is a registered dealer under the Kerala General Sales Tax Act, 1963. It is a small-scale industrial unit. It is engaged in the business of manufacture and sale of tin containers. We are told that the containers are used for packing and storing vegetable oil. In this revision, we are concerned with the assessment year 1986-87. THE respondent is the Revenue.

(2.) THE two aspects mooted before the statutory authorities and before us are as follows : (a) What is the rate at which the tin containers sold by the assessee are liable to be taxed ? According to the assessee, it will come under entry 45 of the First Schedule to the Kerala General Sales Tax Act and liable to tax only at 6 per cent. THE Revenue contended that it will come under entry 116 of the First Schedule to the Act and will be taxable at 8 per cent. (b) What is the rate at which the scrap is liable to be taxed ? According to the assessee, it is only at 4 per cent. On the other hand, according to the Revenue, it will be taxable at 6 per cent under entry 121-A of the First Schedule to the Act.

(3.) BEFORE us, counsel for the assessee placed reliance on entry 45 of the First Schedule to the Act, as it stood before it was substituted by the Finance Act (Act 18 of 1987 ). Entry 45 of the First Schedule to the Act reads as follows : ------------------------------------------------------------------------ Sl. Description of goods Point of levy Rate of tax No.------------------------------------------------------------------------ 45. Iron and steel articles, At the point of first 6 not mentioned elsewhere sale in the State by in this Schedule or the a dealer who is liable Second Schedule. to tax under section 5 ------------------------------------------------------------------------ On the other hand, the learned Government Pleader placed considerable reliance on entries 116 and 121 of the First Schedule to the Act and submitted that tin containers are taxable at 8 per cent. Entries 116 and 121 of the Act read as follows : ------------------------------------------------------------------------ Sl. Description of goods Point of levy Rate of tax No.------------------------------------------------------------------------ 116. Tin including tin sheets At the point of first 8 and tin plates sale in the State by a dealer who is liable to tax under section 5. 121. All metallic products At the point of first 8 (or articles made of sale in the State by iron or steel in a dealer who is liable combination with to tax under section 5. other metals) other than those specified elsewhere in this Schedule or the Second Schedule.------------------------------------------------------------------------