DEPUTY COMMISSIONER OF AGRICULTURAL INCOME-TAX AND SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. A KHADER KUNHI SONS CANNANORE

JUDGEMENT

(1.) THESE revision cases relate to the assessment of the same person for the three years 1968-69, 1969-70 and 1970-71. The commodity termed by the assessee-revision petitioner as "twisted cotton fishing twine" was sold by the assessee for a sum of Rs. 49,693. 81 for the year 1968-69 and for a sum of Rs. 41,279. 84 for the year 1969-70. In the original assessment the turnovers represented by these amounts were taxed at the rate of 1 per cent, apparently because the commodity fell under item 4 (ii) to the Second Schedule to the Kerala General Sales Tax Act, 1963. Later it was felt that it was the rate of 3 per cent that was applicable because the commodity in question was not cotton yarn, and fresh notice was issued to the assessee and the above-mentioned turnovers were taxed at 3 per cent. The same procedure was followed for the year 1970-71 relating to a turnover of Rs. 16,166. 98, which related to the sale of the same commodity. Appeals taken before the Appellate Assistant Commissioner against those assessment orders failed and there were further appeals before the Tribunal.

(2.) THE Tribunal stated the assessee's case in paragraph 9 of its order and considered the meaning of the expressions "twine" and "yarn" as given in the dictionary, in paragraph 10, referred to the decision of this court in Krishna Iyer v. State of Kerala [[1962] 13 S. T. C. 838], in paragraph 11, and came to the conclusion that it is the ordinary meaning in common parlance that must be applied in understanding whether a particular commodity was cotton yarn or a different commodity. Reference was then made to the decision of the Madras High Court in Madura Mills Company Limited v. Government of Madras [[1970] 25 S. T. C. 407], and following the decision the Tribunal came to the conclusion that what the assessee sold and which was called "twisted cotton fishing twine" was "cotton yarn" within the meaning of item No. 4 (ii) of the Second Schedule to the Kerala General Sales Tax Act, 1963. Accordingly, the turnovers, which we have mentioned, were assessed at the rate of 1 per cent. THE question for consideration is whether the view taken by the Tribunal is correct.