PRAMOD FOODS P LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The question involved turns upon the interpretation of R.5(8) of the Kerala General Sales Tax Rules, 1963, the Rules in brief. Heard Sri. P. Raghunath for the Petitioner and Sri. T. Karunakaran Nambiar, Special Government Pleader (Taxes) for the respondents.

(2.) One Krisp Biscuit Company was a partnership with six partners namely Mrs. V. K. Kunhikadeeja and others, which was carrying on business at Calicut with effect from 14-4-1980. The petitioner Pramod Foods Pvt. Ltd. is a Private Limited company registered under the Indian Companies Act, 1956. On 1-7-1985, five of the partners of the firm Krisp Biscuit Company retired, and the petitioner joined the firm as a partner to carry on the business in partnership with Mrs. V. K Kunhikadeeja. As per the deed of partnership, copy of which is Ext. P1, the major share in the partnership was that of the partner, and it was entitled to 95 per cent of the profits and losses of the firm. This partnership carried on business till 1-4-1986. when it was dissolved. The business, with all its assets and liabilities, was taken over by the petitioner as a going concern.

(3.) Krisp Biscuit Company bad been registered as a dealer under S.14 of the Kerala General Sales Tax Act, 1963 (the Act for short). The registration was being renewed from year to year.