ASST COMMR SALESTAX Vs. JANATHA EXPELLER CO

JUDGEMENT

(1.) The Revenue is the appellant in this Writ Appeal. Respondents herein are the petitioners in O. P. No. 3977 of 1978 They are registered firms doing business mainly in coconut oil and cakes. They are registered dealers under the Kerala General Sales Tax Act, 1963 as well as under the Central Sales Tax Act, 1956. They purchase copra locally, crush the same in their mills and thereafter sell coconut oil and cake within the State as well as outside the State. Petitioners state that the inter State turnover of coconut oil and cake is assessable only at one percent, of the sale price of the goods sold, on the basis of notification, SRO No. 117 of 1966 dated 8-3-1966, promulgated by the Kerala Government under S.8(5) of the Central Sales Tax Act. It is their case that the inter State sales turnover of coconut oil and cake are not exigible to tax under the Kerala Additional Sales Tax Act, 1978 f Act 20 of 1978). By that Act, the tax payable under the Kerala General Sales Tax Act, 1963 was increased by ten percent of such tax from April, 1978 and by fifteen per cent from 16-3-1983. The respondent in the Original Petition (the assessing authority) issued notices to the petitioners to pay additional sales tax from the month of April. 1978 onwards as evidenced by Exts P2 to P11. Petitioners challenged Exts. P2 to P11 notices as unauthorised and illegal. They prayed for the issue of a writ of certiorari to quash Exts. P2 to P11 notices and also for the issue of a writ of mandamus directing the respondent to forbear from realising any amount demanded as per Exts. P2 to P11. It is stated that the "additional sales tax" under Kerala Act 20 of 1978 is not exigible in the case of "inter State sales". Kochu Thommen, J. accepted the petitioners' plea and quashed Exts. P2 to P11. The Original Petition was allowed. The Revenue has come up in appeal. The judgment under appeal is reported as Janatha Expeller Co. v. Asst. Commissioner ( 1982 KLT 267 - (1982) 49 STC 216).

(2.) We beard counsel for the Revenue appellant, Mr. T. Karunakaran Nambiar, Senior Government Pleader and counsel for the respondents, Mr. S. A. Nagendran. The sole argument of the learned Government Pleader to sustain Exts. P2 to P11 notices, demanding additional sales tax under Kerala Act 20 of 1978, was based on S.8(2A) of the Central Sales Tax Act. Counsel contended that as per S.2 of the Kerala Additional Sales Tax Act, 1978, tax payable under the Kerala General Sales Tax Act, 1963 shall be increased by "ten" percent of such fax, (till it was increased to 15 percent by Ordinance in 1983). Under S.8(2A), the tax payable by a dealer on his turnover relating to inter state sales, shall be exempt from tax generally or subject to tax generally at a rate which is lower than 4 percent, similar to the provisions of or same as the Sales Tax law of the appropriate State. Counsel contended that the learned Judge was in error in ignoring the significance of S.8(2A), in holding that additional tax levied under Act 20 of 1978 has no application to the instant case.

(3.) We are unable to accept this submission. In brief, the scheme for the levy of sales tax under the Central Sales Tax Act, 1956 relating to inter state sales, seems to fall under five categories: