TVS SRICHAKRA LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) PETITIONER is engaged in the manufacture of tyres, tubes and flaps for motor vehicles and is having the factory for the manufacture of these items in Tamil Nadu State. PETITIONER purchases raw rubber from Kerala State and transfer it to their factory at Madurai for manufacturing tyres, tubes, etc.

(2.) THE original assessment of the petitioner for the year 1993-94 was completed on July 31, 1997 in which the rubber cess paid amounting to Rs. 11,52,000 on the purchase turnover of rubber was not taken into account for arriving the total taxable turnover. In the light of the Supreme Court decision in State of Kerala v. Madras Rubber Factory Ltd. [1998] 108 STC 583; 6 KTR 118 holding that rubber cess paid is taxable and includible in the purchase turnover of rubber, exhibit P1 assessment order was reopened and exhibit P2 assessment was completed for the year 1993-94 including the cess in the turnover.

(3.) IN Kil Kotagiri Tea and Coffee Estates Co. Ltd. v. INcome-tax Appellate Tribunal [1988] 174 ITR 579; 1988 (2) KLT 271 this Court held that when the court decides a matter it does not make the law in any sense, but all it does is that it interprets the law and states what the law has always been and must be understood to have been. Hence the petitioner is liable on the purchase turnover of rubber including the cess paid.