A. BAIJU, SHAJU BAKERY Vs. STATE OF KERALA

JUDGEMENT

(1.) THE revision petitioner is a dealer registered under the provisions of the Kerala General Sales Tax Act, 1963 ('the Act' for short). He is engaged in selling bakery products. According to the assessee, he effects purchases of the bakery products from one 'Appu's Bakers', Nanthencode and his sales are second sales and therefore, they are exempt from payment of sales tax. The claim of the assessee for exemption from payment of sales tax had initially been granted by the assessing authority.

(2.) THE shop premises of the assessee was inspected by the Intelligence wing of the Department. On such inspection, they had found suppression of purchases and sales of bakery products. It was also found that the assessee effected sales of bakery products under a brand name or a trade mark.Based on the report of the Intelligence wing of the Department, the assessing authority has reopened the assessment by issuing a pre -assessment notice incorporating the omissions pointed out by the Intelligence wing of the Department after conducting an inspection of the business premises of the petitioner/assessee. The assessee had filed his objections to the pre -assessment notice. The assessing authority has completed the assessment by holding that the assessee effected sales of the bakery products under a brand name or a trade mark, and therefore, exigible for payment of sales tax under Sub -section (2) of Section 5 of the Act. While coming to the aforesaid conclusion the assessing authority in its order of assessment passed, has stated as under:

(3.) AGGRIEVED by the quantification of the tax liability made by the assessing authority, the assessee had preferred appeal before the first appellate authority in S.T.A. No. 675 of 2001. The first appellate authority by its order dated 23.1.2002 has rejected the assessee's appeal and in that once again observed as under: