DY COMMR Vs. KERALA INDUSTRIAL WORKS

JUDGEMENT

(1.) The Revenue is the petitioner herein. The respondent is an assessee under the Kerala General Sales Tax Act. The assessment year with which we are concerned is 1978-79. The assessee/respondent purchased soft-wood and manufactured Splints and Veneers. It also manufactured packing wood-wool, out of the said soft-wood. A sales turnover of Rs.1,13,194.50 was disclosed regarding the sale turnover of wood-wool. The assessing authority estimated the purchase turnover of soft-wood purchased for the manufacture of wood-wool at Rs.56,597.25. On this, be levied purchase tax under S.5A of the KGST Act. The assessee relied on the Notification. SRO No. 148/72 and contended that tax under S.5A of the Act is not exigible in the instant case. This was negatived by the assessing authority and confirmed by the Deputy Commissioner (Appeals). In second appeal, the Appellate Tribunal held that the assessee was primarily a manufacturer of Splints and Veneers and the user of the left overs for manufacture of wood-wool will not disqualify him for the exemption under S.5A of the Act. So, the purchase tax levied, relating to the turnover of wood-wool, amounting to Rs. 56,597.25, was deleted. The Revenue has come up in revision.

(2.) We heard counsel for the Revenue, Mr. Divakaran Pillai, as also counsel for the assessee/respondent, Mr. Ramakrishnan. The entire controversy centres round the scope of Notification SRO No. 148/72. SRO No. 148/72 is as follows:

(3.) We see no reason to interfere with the decision of the Appellate Tribunal. The TRC is without merit. It is dismissed. No costs.