M H INDUSTRIES Vs. STATE OF KERALA

JUDGEMENT

(1.) THIS tax revision case is at the instance of the assessee. Relevant assessment year is 1994-95. The assessee is a manufacturer of plastic cups used for the purpose of collecting latex. The only question that arises for consideration in this revision is whether the exemption from tax granted to latex collection plastic cup being an agricultural implement as per the amendment to S. R. O. No. 1727 of 1993 dated November 4, 1993 brought in by S. R. O. No. 326 of 1995 dated May 14, 1995 has any application for the assessment year 1994-95. The assessing authority as well as the first appellate authority and the Appellate Tribunal rejected the contention.

(2.) S. R. O. No. 1727 of 1993 dated November 4, 1993 issued in exercise of the powers conferred under section 10 of the Kerala General Sales Tax Act, 1963 granted exemption in respect of the tax payable under the Sales Tax Act on the turnover of sale or purchase, as the case may be, of goods mentioned in Schedule 11. Under Schedule II serial No. 1 is agricultural implements worked by hand, namely : (1) Alavangoos, etc. , 37 items are shown as agricultural implements under the above notification. Thereafter by S. R. O. No. 326/95 dated May 14, 1995 one more item was added after item No. 37 as latex collection plastic cup or rubber bowl. The notification reads as follows " Amendment to S. R. O. No. 1727/93 S. R. O. No. 326 of 1995.- In exercise of the powers conferred by section 10 of the Kerala General Sales Tax Act, 1963 (Act 15 of 1963), the Government of Kerala, having considered it necessary in the public interest so to do, hereby make an exemption in respect of the tax payable under the said Act on turnover of sale or purchase of 'latex collection plastic cup or rubber bowl' and make the following amendment to Notification I No. G. O. (P) 153/93/td dated 3rd November, 1993 published as S. R. O. No. 1727 of 1993 in Kerala Gazette, Extraordinary No. 1120 dated 4th November, 1993, namely :- AMENDMENT.- In Schedule II to the said notification, under columns (1) and (2), to serial No. 1, after item 37, the following shall be inserted namely : '38. Latex collection plastic cup or rubber bowl. ' Explanatory Note.- (This does not form part of Notification but is intended to indicate its general purport.) Government have decided to exempt latex collection plastic cup or rubber bowl from payment of tax under the Kerala General Sales Tax Act treating it as an agricultural implement. The notification is intended to achieve the above object. "

(3.) WE are of the view that the amendment of the year 1995 is neither clarificatory nor explanatory in nature. The assessee is, therefore, not entitled to exemption from tax in respect of latex collection plastic cup for the assessment year 1994-95. The tax revision case, therefore, stands dismissed. Petition dismissed. .