P K MUMTAZ Vs. ADDL SALES TAX OFFICER

JUDGEMENT

(1.) The issue arising for decision is as to whether bed sheets are goods exempted under S.9 of the Kerala General Sales Tax Act, 1963, hereinafter referred to as the "KGST Act", for short, before 31/12/1999.

(2.) Exts. P1 and P2 assessment orders for the assessment years 1996-1997 and 1997-1998 were issued to the petitioner, an assessee borne on the rolls of the first respondent, overruling her contention that the goods dealt with by the assessee, a merchant in bed sheets, are "cloth woven on powerloom" and are exempted from tax by virtue of Entry 10 in the Third Schedule to the KGST Act read with S.9 thereof. The view taken in Exts. P1 and P2 is that bed sheets that are purchased and sold by the petitioner are not merely powerloom cloth, but bed sheets sold as 'singles' and 'doubles'.

(3.) By Ext. P3 appellate order, the assessment orders were set aside and case remitted, to provide an opportunity for the assessee to prove the claim that the goods are exempted. The remit was to reexamine and arrive at a fair finding whether the item is taxable, because the assessee had produced, before the appellate authority, a certificate from the supplying manufacturer that the goods are manufactured on powerloom. The assessing authority was directed by the appellate authority to verify the purchase bills and certificate and other relevant evidence and reexamine the issue and complete the assessment afresh according to law.