STATE OF KERALA Vs. BHARAT RUBBER INDUSTRIES

JUDGEMENT

(1.) State of Kerala is the petitioner in this revision petition filed under S.41 of the Kerala General Sales Tax Act. The Sales Tax Officer completed the assessment in respect of the respondent for the year 1996-97. In passing the said assessment order, the assessing authority found that, the respondent assessee has sold manufactured jerry cans to dealers for export and produced Form 18A and claimed exemption. He found that the respondent had effected local purchase of the raw materials for manufacture of jerry cans by using Form 18 declaration. In the circumstances, the assessing authority proceeded to assess the differential rate of tax in tune with sub clause (ii) of clause (3) of S.5 of the Kerala General Sales Tax Act ("KGST Act" for short). The assessee went in appeal and the appellate authority confirmed the order of the assessing authority. However, in further appeal carried by the assessee, the Tribunal reversed the order of the appellate authority taking the view that the respondent assessee has not used the goods for any other purpose other than for the production of finished goods liable to tax and that it had not committed any irregularity to assess differential rate of tax under clause (ii) of sub-section (3) of S.5 of the Act. It is feeling aggrieved by the said order, the State of Kerala has preferred this revision.

(2.) The petitioner has raised the following questions of law for our consideration and decision.

(3.) We heard Sri. Muhammed Rafiq, the learned Government Pleader appearing on behalf of the Revenue and Sri. Jose Joseph, learned counsel appearing for the respondent.