STATE OF KERALA Vs. MILLENIUM POLYPACKERS AND LTD

JUDGEMENT

(1.) The Revenue calls in question the legality or otherwise of the order passed by Sales Tax Appellate Tribunal, Additional Bench, Ernakulam in T.A. No. 1022 of 2003 dated 29.7.2004. By the impugned order, the Tribunal has rejected the appeal filed by the Sate Government and has confirmed the order passed by the first appellate authority in S.T.A. No. 363 of 2003 dated 25.6.2003.

(2.) The Revenue has raised the following questions of law for our consideration and decision. They are:

(3.) The assessee is a dealer registered under the provisions of the Kerala General Sales Tax Act, 1963 (Act, for short) and is borne on the files of the Additional Sales Tax Officer-I, Aluva. He is a dealer in plastic bags and plastic covers. In the annual return filed for the assessment year 2000-01, the assessee had claimed exemption from payment of sales tax on the ground that the sale of plastics bags and plastic covers is a second sales, since the purchased plastic tubings has already suffered tax. The assessing authority has rejected the claim, primarily on the ground, that, what was purchased by the assessee was plastic tubings and the goods sold are plastic bags and covers by the assessee after side sealing by using machines and that activity would amount to manufacture and, therefore, the assessee cannot claim that he is a second dealer in the State and, therefore, not eligible for exemption from payment of tax under the Act.