STATE OF KERALA Vs. M/S. MARGO BIO

JUDGEMENT

(1.) The revision petitioner is before us challenging the impugned order of the Sales Tax Appellate Tribunal dated 25.06.2008 at Annexure C granting exemption to the assessee for their product 'Ecohume', which they claimed to be an organic substance coming under Entry 17 of III Schedule of the Kerala General Sales Tax Act, 1963 (for short 'the Act').

(2.) Following are the questions of law raised in this case:

(3.) Exemption was claimed by the assessee for the assessment year 2003-04, on the sales turnover of 'Ecohume', which the assessee contended to be a product which is a non-taxable item being an organic substance coming under Entry 17 of the III Schedule of the Act. The contention did find favour with the Assessing Authority; on verification of the stock receipt details, sales statement, as also F-Forms produced, giving the nomenclature of bio pesticides, all documents prepared by the assessee itself. It was held that the said product comes under Entry 47 of the First Schedule taxable at 4%. The First Appellate Authority directed the Assessing Authority to verify the claim for exemption of the sale of 'Ecohume' on the basis of the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), South Zonal Bench, Bangalore. The assessee filed an appeal before the Sales Tax Appellate Tribunal and vide the impugned order dated 25.06.2008 in T.A.No. 156/2007, the appeal was allowed and the matter was remanded with respect to the credit notes, to the Assessing Authority. The Tribunal relied upon the certificates produced by the assessee at Annexures D and E as well as the order of the CESTAT and remanded the matter for the limited purpose to ascertain whether the turnover is in respect of sale of 'Ecohume' and categorically directed the Assessing Authority to grant exemption for the sale of 'Ecohume'. This finding of the Tribunal has been challenged before us in this Revision.