DUSHRA FIBRE INDUSTRIES Vs. STATE OF KERALA

JUDGEMENT

(1.) THESE are the four tax revision cases requiring us to exercise powers under section 41 of the Kerala General Sales Tax Act, 1963 read with rule 41 (1) of the Kerala General Sales Tax Rules, 1963, which is in pursuance of section 9 (2) of the Central Sales Tax Act, 1956, enacting the applicability of general sales tax law of this State.

(2.) IN all these four revision cases the assessment years 1985-86, 1986-87, 1988-89 and 1987-88 respectively are involved. Although all these four petitions relate to the question of assessment of four different and independent assessment years, they raise the solitary question. The said question relates to the applicability of section 8 (2a) of the Act. To be precise the question would be relation to the situation relating to sale and consequent taxation, if it is exemption from tax generally, under the sales tax law of the State of Kerala whether, still it could be considered to be taxable under the Central Sales Tax Act, 1956. Therefore it is more than obvious that the situation gets governed by the statutory provision of section 8 (2a) of the Central Sales Tax Act, 1956. IN the said provision, the tax even if may be payable under the Central Sales Tax Act and it relates to the sale of any goods which is, under the sales tax of this State of Kerala is exempt generally, the tax payable shall be nil.

(3.) THE first appellate authority did not dispute this position of applicability of section 8 (2a) of the Central Act in the event of the commodity in question as exempt under the State sales tax law - Kerala General Sales Tax Act, 1963.