YESBEE CARBOTIC PVT LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) This revision is filed by the assessee. Assessment year relates to 1997-98. The assessee used to purchase Carbon Dioxide in gaseous form from F.A.C.T. after suffering tax thereon. The assessee effects sales of liquefied Carbon Dioxide in cylinders and hence, what is purchased and sold is Carbon Dioxide and therefore, the sale of Carbon Dioxide in the hands of the assessee is the second sale inexigible to tax. The levy of tax of Carbon Dioxide under Entry 61 of the 1st Schedule to the Kerala General Sales Tax Act is at the point of first sale in the State. The contention of the petitioner was not accepted by the Authorities below including the Appellate Tribunal. It is in that circumstances that the petitioner has approached this Court.

(2.) Learned counsel for the petitioner brought to our notice that there is no manufacture involving change of gaseous Carbon Dioxide into liquid Carbon Dioxide. According to him, the petitioner obtained Carbon Dioxide in gaseous form from the F.A.C.T. through pipeline. The petitioner purchased Carbon Dioxide in bulk in gaseous form after suffering tax thereon. The assessee effects sales of liquefied Carbon Dioxide in cylinders. What is purchased and sold is Carbon Dioxide. The question for consideration is whether the gaseous Carbon Dioxide is different from liquid Carbon Dioxide. According to the petitioner what they purchased is Carbon Dioxide in gaseous form from F.A.C.T. Thereafter, the Carbon Dioxide is purified and then it is liquefied and collected in gas cylinders. Thereafter purified liquid form of Carbon Dioxide is sold to various other persons. The case is that both are same.

(3.) In M/s. Supersonic Industrial Complex. Muvattupuzha v. D.C. (III) Ernakulam (2002 (10) KTR 2003) this Court held thus: