STATE OF KERALA Vs. CHELUR CORPORATION

JUDGEMENT

(1.) Revenue has come up with this revision against the order passed by the Sales Tax Appellate Tribunal in T.A. Nos. 267 of 1989 and 808 of 1995.

(2.) T.A. No. 267 of 1989 is the appeal filed by the Revenue against the order of the Deputy Commissioner (Appeals) for the year 1983-84. Assessee is the manufacturer of slotted angles, panels and accessories. For the year 1983-84 assessing authority had assessed slotted angles at the rate of 12 per cent as an item coming under entry 145 of the First Schedule to the Kerala General Sales Tax Act, 1963 as it stood prior to April 1, 1984, which read as follows: <p>Sl. Description of Point of levy Rate of tax No. goods 145. Safes, almirahs and At the point of first sale 12 per cent furniture made of in the State by a dealer iron or steel who is liable to tax under Section 5

(3.) Assessee for the year 1984-85 had returned a total turnover of Rs. 5,51,331.26 and taxable turnover of Rs. 16,284.16 and the assessment for the year 1984-85 was completed. Assessing authority took the view that the assessee had sold slotted angles which constituted parts of safes, almirahs and furniture made of iron and steel falling under entry 145 of the First Schedule and are taxable at 12 per cent with effect from April 1, 1984. Aggrieved by the order assessee took up the matter before the Appellate Assistant Commissioner who took the view that levy of tax at 12 per cent on the sales turnover of slotted angles and panels which constituted parts of furniture is correct since the goods sold by the assessee is nothing but furniture, various parts of which can be assembled or detached as and when required. Assessee took up the matter in appeal as T.A. No. 808 of 1995. Tribunal placing reliance on the decision of the Madras High Court in State of Tamil Nadu v. Poornima Agencies (Tax Case No. 977 of 1979 dated December 5, 1979) took the view that slotted angles, plates, shelves, bolts and nuts cannot be termed as furniture and office equipment. The Tribunal also held that the Revenue has not placed any material to show that slotted angles, panels, etc., sold by the assessee were of the category which could only be used as parts of furniture or were intended to be used as furniture. Tribunal directed the assessing authority to assess the turnover of slotted angles, panels, etc., at 6 per cent under entry 45 of the First Schedule. Aggrieved by the same, State has preferred T.R.C. No. 58 of 2001.