PREMIER TYRES LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) In this revision petition, we are concerned with the assessment year 1995-96. The commodity in dispute is Nylon Tyre cord fabric. The assessee, while filing its annual return, had claimed exemption since, according to the assessee, the commodity in which it is dealing would fall under Entry 11 of Third Schedule to the Kerala General Sales Tax Act ("KGST Act" for short). It is apropos to notice here itself that the commodity falling under Entry 11 of Third Schedule to the Act is exempt from payment of tax by virtue of the provisions of Section 9 of the Act. The assessing authority has rejected the claim and it is of the view that it is unscheduled goods and required to be taxed under Entry 156 of First Schedule to the Act. This view of the assessing authority is accepted by the first appellate authority. The Tribunal, to say the least, has most mechanically accepted the views of the assessing authority and that of the appellate authority without there being any discussion whatsoever. Aggrieved by the said order of the Tribunal, the assessee is before us in this revision.

(2.) Sri.Pathros Matthai, learned Senior Counsel appearing for the assessee would submit that the Tribunal without considering the issues, i.e., whether the Nylon Tyre cord fabric is an item coming under Entry 11 of Third Schedule to the Act and, therefore, exempt under Section 9 of the Act and whether the assessee is liable to pay interest under Section 23(3) of the Act, could not have mechanically confirmed the orders of the assessing authority and the appellate authority for the assessment year 1995-96.

(3.) Sri.V.V.Ashokan, learned Special Government Pleader (Taxes) sought to justify the orders passed by the Tribunal, may be knowing fully well that the said order can never be justified.