DEPUTY COMMISSIONER OF SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. MADRAS RUBBER FACTORY LIMITED

JUDGEMENT

(1.) T. R. C. Nos. 126 and 130 of 1993 relate to the assessment year 1974-75 and T. R. C. Nos. 131 of 1993 and 159 of 1995 relate to the assessment year 1975-76. All the four revision cases are at the instance of the department and the questions for consideration in all the four cases are also common. Therefore, all the four revision cases are disposed of by a common judgment.

(2.) THE question of law raised for decision of this Court in all the four cases are the same and they are as follows : " 1. Whether, in the facts and circumstances of the case, the Tribunal was right in directing the deletion of the amount of cess from the taxable turnover ? 2. Whether, in the facts and circumstances of the case, the Tribunal was right in finding that the assessee cannot be called upon to pay tax higher than what is suggested in the Schedule and while computing tax liability of the assessee credit shall be given to the amount of sales tax suffered by the assessee at the time of the local purchase of the reclaimed rubber ? 3 Is not the finding of the Tribunal on this question vitiated by arbitrariness, lack of evidence, perverse and without any material at all ? 4 Whether in the facts and circumstances of the case the Tribunal was right in holding that sales effected are in the course of inter-State sale and not sale within the State ? 5 Is the finding and conclusion arrived at by the Tribunal justified in law ?"

(3.) THE next question is as to whether the alternate contention raised by the assessee before the Tribunal that if tax is to be levied on the local purchase turnover of reclaimed rubber at the hands of the assessee, as held by the Tribunal, then the tax paid by the assessee at the time of purchase has to be given credit for. THE Appellate Tribunal held that the claim is just and reasonable holding that the assessee had purchased the reclaimed rubber after paying 4 per cent sales tax in good faith and on the basis of a bona fide opinion and therefore, the assessee cannot be called upon to pay tax higher than what is suggested in the Schedule.