TASTON FOOD INDUSTRIES Vs. STATE OF KERALA

JUDGEMENT

(1.) These tax revision cases at the instance of the assessee arise out of two orders of the Kerala Sales Tax Appellate Tribunal, Addl. Bench, Kottayam. Relevant assessment years of T.R.C.Nos.198, 209, 288 and 281 of 1994 are 1981-'82,1982-'83,1983-'84 and 1984-'85 respectively. Appeals in respect of these years were disposed of by the Tribunal by a common order dated 17.11.1992. T.R.C. Nos. 299 and 301 of 1994 arise out of a common order dated 8.12.1992. Relevant assessment years are 1980-'81 and 1985-'86.

(2.) The common question arising in these tax revision cases is whether chilli powder, coriander powder and turmeric powder are different and distinct goods from chilli, coriander seeds and turmeric. Following a bench decision of this Court in Ambika Provision Stores v. State of Kerala, 1987 (2) KLT 99 , the tribunal held that chilli powder, coriander powder and turmeric powder are different and distinct goods from chilli, coriander seeds and turmeric. The revision petitioner/assessee contended that since (1987) 67 STC 170 has been overruled by a Full Bench of this Court in Namputhiris Pickle Industries v. State of Kerala & Anr., 1993 (1) KLT 486 , the findings of the tribunal on the above issue are to be reversed. When the matter came up for consideration before a Bench of this Court the learned Government Pleader contended that the Full Bench decision is no longer good law, in view of the later decision of the Supreme Court in Rajastan Roller Flour Mills Association and Another v. State of Rajastan and Ors., (1993) 91 STC 408. Reliance was also placed by the learned Government Pleader on Krishna Chander Dutta (Spice) Pvt. Ltd. v. Commercial Tax Officer and Others (1994) 93 STC Page 180, and Chillies Exports House Ltd. v. Commissioner of Income Tax, 1997 (5) SCC 157 . In view of the above submission made by the learned Government Pleader, these tax revision cases were referred by the Bench for consideration of a larger Bench by a common order dated 1.9.1997.

(3.) In 1987 (2) KLT 99 = (1987) 67 STC 170, a Bench of this Court upheld the finding entered by the Sales Tax Appellate Tribunal that chillies and coriander and their powder are commercially distinct and different commodities. The learned Judges took the view that when chilli was turned into chilli powder and coriander into coriander powder, the original commodities underwent a change, giving rise to chilli powder and coriander powder. They can no longer be regarded as chilli and coriander. A new and distinct commodity emerged out of the manufacturing process. It was held that chilli powder and coriander powder are distinct and different from chilli and coriander, both in common parlance and in commercial circles.