STATE OF KERALA Vs. VASANTHA MODERN RICE MILL

JUDGEMENT

(1.) These two Sales Tax Revisions have been placed before this Full Bench to answer the reference made by a Division Bench vide order dated 17.6.2014.

(2.) The Division Bench, while hearing these two Sales Tax Revisions, expressed its doubt on the correctness of earlier three judgments of this Court in State of Kerala v. P.D.Thomas (S.T.Rev.No.104 of 2010) decided on 15.11.2010 and Empees Modern Rice Mills v. State of Kerala, 2009 4 KerLT 433 as well as another judgment following Empees Modern Rice Mills's case in S.T.Revision Nos.107, 108, 109 and 110 of 2012 decided on 19.11.2013. Now the brief facts giving rise to the reference order dated 19.6.2014 need to be noted.

(3.) S.T.Rev.No.4 of 2012 relates to assessment year 1998-99 and S.T.Rev.No.5 of 2012 relates to assessment year 2001-2002. The assessee is a Rice Mill engaged in manufacture of rice. Assessment was completed under the Kerala General Sales Tax Act, 1963 (hereinafter referred to as 'the Act, 1963'), in which no purchase tax was levied on the assessee on the purchase of paddy. The assessment was reopened on the basis of suo motu revision under the Act, 1963 initiated by the Deputy Commissioner. Paddy purchased from agriculturists/ unregistered dealers was computed for arriving taxable turnover and the tax due was adjusted against the sales tax exemption available. The assessee, a small scale industrial unit, is eligible for exemption from sales tax on sale of rice and bran. Tax under Section 5A of the Act, 1963 was levied, against which First Appeal was filed by the dealer, which was dismissed. The assessee approached the Sales Tax Appellate Tribunal. The Tribunal vide its judgment dated 26.9.2009 allowed the appeal of the assessee holding that the assessing authority cannot levy tax on purchase under Section 5A of the Act 1963, when the stage of levy is already fixed in the State Enactment. The Tribunal placed reliance on the judgment of the Apex Court in Civil Appeal No.263/2006. The State, aggrieved by the order of the Tribunal, has filed revision.