ASSOCIATED CEMENT COMPANIES LTD Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THIS is a group of petitions. They relate to consideration and consequent decision of a solitary question. Therefore these petitions are heard as a group and are being decided by this judgment also as a group.

(2.) THE question relates to the question of exemption of what is known as "turnover tax". It can be illustrated by reference to the relevant provisions as follows : By virtue of section 5 of the Kerala General Sales Tax Act, 1963 ("the KGST Act", for short), levy of tax on sale and purchase of goods is provided. Section 5 (2a) was introduced by the Finance Act, 1987 (Act 18 of 1987) with effect from July 1, 1987, which introduced what is now commonly known as "turnover tax" on the turnover of goods specified thereunder. It would be seen that this levy of turnover tax is apart from and in addition to the sales tax charged and levied under the said Act. In these petitions the only subject-matter of concern is the turnover tax introduced as stated above under section 5 (2a) levying 1/2 per cent in nature of turnover tax on the turnover of goods coming under the First and Fifth Schedules of the Act. It is needless to state that the commodities or goods that are the subject-matter of these petitions are stated to be covered under the above Schedules referred to.

(3.) IT is explained in the notification that a turnover tax is payable by dealers whose total turnover exceeds Rs. 50 lakhs at all points of sale or purchase of goods coming under the First or Fifth Schedule to the Kerala General Sales Tax Act. IT is explained further that the Government decided to restrict the levy of turnover tax on taxable turnover of sales on the first sale point of goods received on branch transfer or consignment basis only.