MARBLES INDIA Vs. STATE OF KERALA

JUDGEMENT

(1.) The main question involved in this Tax Revision Case is whether magnesite power used by the assessee for manufacture of mosaic tiles would come within Entry 84 of Schedule I of the Kerala General Sales tax Act, 1963, which deals with fertilisers. This question assumes importance because if the item is treated as 'fertiliser' it is taxable at the first point of sale within the State at the rate of 2%. On the other hand, if the item is treated as marble article coming within entry 72 of the said Schedule it is taxable at the point of first sale at the rate of 10%. This Tax Revision Case is coming before us to resolve the above dispute between the assessee met the Department.

(2.) The assessee in this case is a manufacturer of marble tiles and the assessment year involved is 1986-'87. Before the assessing authority, the assessee pleaded that magnesite powder which is otherwise known as 'dolomite' is a fertiliser liable to be taxed at the rate of 2%. However, the officer proposed to treat the item as a raw material used for the manufacture of mosaic tiles which would attract entry 72 of First Schedule as it stood then. Therefore, the turnover in respect of the said article was assessed at the rate of 10%. Dis-satisfied with the said conclusion, the assessee went up in appeal before the Appellate Assistant Commissioner, but in vain. The matter did not end there. The assessee preferred further appeal before the Sales Tax Appellate Tribunal as T. A. No. 58 of 1989. There also the assessee not with failure. Hence, it wants this Court adjudicate the matter in its favour.

(3.) Heard learned counsel for the assessee and also the Government Pleader for the State.