ASST COMMISSIONER Vs. ASSOCIATED CEMENT COMPANIES LTD

JUDGEMENT

(1.) These batch of cases are appeals filed by the State against the judgment of the learned single Judge. By the impugned judgment, the learned single Judge struck down a portion of SRO 1401/92 issued as GO (P) No. 176/92/TD dated 27th October, 1992, produced as Ext. P1 in OP No. 2482/93, as discriminatory and violative of Art.301 and 304(a) of the Constitution of India. The facts and law being common raised in these cases, WA No. 260/96 was treated as the main case and hence, the facts are referred to with respect to WA No. 260/96.

(2.) WA No. 260/96 was filed against the judgment in OP No. 2482/93. Petitioner in the Original Petition is M/s. Associated Cement Companies Ltd. It is a public limited company having its registered office at Bombay and a warehouse cum sales depot at Thalasserry in the State of Kerala and the Company is engaged in the manufacture and sale of cement For the manufacture of cement, the petitioner Company is having factories outside the State of Kerala in different States. Cement manufactured outside the State of Kerala is despatched to the State of Kerala on consignment and / or by way of branch transfer from the petitioner's factories or establishments in other States. Thus, the cement brought from outside the state of Kerala is sold within the State of Kerala Petitioner is a registered dealer under the Kerala General Sales Tax Act and also under the Central Sales Tax Act on the files of the Assistant Commissioner (Assessment) Sales Tax Special Circle, Kannur.

(3.) The State of Kerala levied a new tax called 'turnover tax' by the Kerala Finance Act 1987. A new S.5(2A) was incorporated in the Kerala General Sales Tax with effect from 1.7.1987. In accordance with the said provision, tax at the rate of 1/2 percent was imposed on all dealers whose turnover in a year exceeded Rs. 25 lakhs on the turnover of the goods coming under the first or fifth Schedule to the Act Subsequently, as per notification No. GO (MS) 119/87/TD dated 2.12.1987 an exemption was granted from payment of turnover tax to the dealers whose turnover did not exceed Rs. 50 lakhs. By the Kerala Finance Act, 1992, S.5(2A) was amended. New provisions were introduced as sub clause (e) to Clause (i) to sub-s. (2A) of S.5 of which sub clause (g) is relevant Sub clause (g) is as follows: