DY COMMR OF SALESTAX Vs. BATA INDIA LTD

JUDGEMENT

(1.) The only question for decision in this batch of tax revision cases is as to whether rubber cess collected from the assessees who are all manufacturers of different rubber products is liable to be included in their purchase turnover of rubber for the purpose of assessment under the Kerala General Sales Tax Act, 1963. The respective assessing authorities have held that the rubber cess paid by the assessees forms part of their purchase turnover. The purchase turnover of rubber is exigible to tax under entry 38 of Schedule I of the Kerala General Sales Tax Act at the last purchase point. The Appellate Authority took the view that the rubber cess paid by the respective manufacturers of rubber products is not liable to be included in their purchase turnover and hence directed a fresh assessment deleting the cess. This view of the appellate authority is confirmed by the Sales Tax Appellate Tribunal in appeals filed at the instance of the Revenue. The State has come up in revision under S.41 of the Kerala General Sales Tax Act.

(2.) Rubber cess is payable under S.12 of the Rubber Act, 1947 (Central Act XXIV of 1947). S.12 as it originally stood is extracted below:

(3.) S.12 was substituted by the Rubber (Amendment) Act, 1960 (21 of 1960) which came into force on 1-11-1960. The section as substituted by the Amendment Act is extracted below:-