DEPUTY COMMISSIONER OF SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. KERALA STATE CO-OPERATIVE CONSUMERS FEDERATION LTD

JUDGEMENT

(1.) THIS tax revision case by the Revenue challenges the order of the Kerala Sales Tax Appellate Tribunal, Additional Bench, Ernakulam, by which they allowed an appeal filed by the respondent and held that levy of sales tax on the sales turnover of confiscated foreign textiles and cigarettes under the Kerala General Sales Tax Act, 1963 ("the Act" in short) was not justified. The respondent is a co-operative society sponsored by the Kerala Government. The main activity of the society is purchase of consumer goods from production centres and distribution of the same to district and primary level co-operative societies for distribution. The respondent-society also sells goods through their own retail shops.

(2.) THE respondent deals in all types of goods such as textiles, cigarettes and other consumer items. Inter alia, they sell goods which are confiscated by the Customs Department of the Government of India, goods which are brought or imported into India unauthorisedly or without proper documents and which are hence confiscated. Such goods confiscated by the Customs Department are sold only to Government sponsored agencies like the respondent. THE respondent had thus effected sales of textiles and cigarettes during the assessment year 1973-74 for an amount of Rs. 10,65,247. 68. Respondent claimed exemption from payment of tax under the Act in respect of these sales of foreign made confiscated items under section 9 of the Act read with the Third Schedule thereto. Respondent's contention was that the cigarettes sold by them fell within entry 6 of the Third Schedule to the Act and the textiles sold fell within entry 7 thereof. Entries 6 and 7 of the Third Schedule of the Act read as follows : " 6. Tobacco as defined in item No. 4 of the First Schedule to the Central Excises and Salt Act, 1944. 7. Cotton fabrics, woollen fabrics and rayon or artificial silk fabrics as defined in items Nos. 19, 21 and 22 respectively of the First Schedule to the Central Excises and Salt Act, 1944. " Entries 6 and 7 thus refer to the definition contained in the First Schedule to the Central Excises and Salt Act, 1944, - to item No. 4 therein for tobacco and to items Nos. 19, 21 and 22, for cotton fabrics. That the textile fabrics sold by the respondent were of the description contained in the definition under items 19, 21 and 22 of the First Schedule to the Central Excises and Salt Act had not at all been disputed by the assessing authority. In fact before the Tribunal the undisputed case was that the textiles and cigarettes sold by the respondent answered the description of the relevant entries in the First Schedule to the Central Excises and Salt Act, 1944.

(3.) IT is not as if this question is res integra. This Court had occasion to deal with a similar question regarding imported sugar. Sugar as defined in item No. 1 of the First Schedule to the Central Excises and Salt Act is entry No. 5 in the Third Schedule to the Act. This Court was faced with the very same question whether imported sugar is comprehended within the said entry. This Court held that the entries in the Third Schedule had been used only as a legislative device for the limited purpose of economy of words, and refused to read the words "in India" into the definition in item 1 of the First Schedule to the Central Excises and Salt Act. (vide State Trading Corporation of India Ltd. v. Assistant Commissioner [1986] 61 STC 190 (Ker); 1985 KLT 973. This decision is on all fours with the present case. We are in agreement with the same. The tax revision case is, therefore, dismissed in limine. Immediately after pronouncement of the judgment, the Senior Government Pleader sought for certificate under article 133 (1) of the Constitution to appeal to the Supreme Court. We are of the opinion that this case does not involve any substantial question of law of general importance, which needs to be decided by the Supreme Court. We therefore, decline to grant the certificate sought for by the Senior Government Pleader. Petition dismissed. .