BHIMA AND BROTHERS Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) The question that falls for decision in this case is the true scope of Explanation 5 to Section 8(f) of the Kerala Value Added Tax Act, 2003 which reads as follows:

(2.) Section 8(1) stands substituted with effect from April 1, 2008. According to the petitioner, the said Explanation is inapplicable to the petitioner. In order to appreciate the contentions of the petitioner it is necessary to advert to the following facts:

(3.) A counter-affidavit has been filed on behalf of the first respondent. Reference is made in the counter-affidavit to circular No. 42/2006. It is, inter alia, stated therein as follows: