TMI Blog2010 (1) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... otification" S.R.O. No. 969/80) is not correct or sustainable. The case of the petitioner requires to be reconsidered and as a natural consequence, the coercive steps being pursued are not liable to be enforced any further. The impugned proceedings, exhibit P9 series, are set aside and the fourth respondent is directed to reconsider the matter in the light of the observations made above, as to the eligibility of the petitioner to have exemption based on exhibit P10 S.R.O. - W.P. (C). No. 20028 of 2006 - - - Dated:- 7-1-2010 - RAMACHANDRA MENON P.R. , J. P.R. RAMACHANDRA MENON J. Whether the rejection of the application submitted by the petitioner for exemption from payment of sales tax in respect of chilly powder and coriand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P3 exemption and the petitioner had been producing and marketing the products without collecting any sales tax. While so, a notice was issued in the year 1996 stating that some of the items marketed by the petitioner were exigible to tax and required to satisfy the liability. Immediately the petitioner approached the Government by filing petitions dated August 27, 1998 and August 12, 1998 and after considering the same, the petitioner was instructed by the Government as per exhibit P4 communication dated September 15, 1998, to apply for amendment of the SSI registration certificate for including the items, for which sales tax exemption was requested and then to apply for ST exemption for those items. In tune with the intimation given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding turmeric powder but leaving out chilly powder and coriander powder . Incidentally, it is to be noted that exemption was being given by the 4th respondent, as borne by exhibits P5 and P6, on the basis of exhibit P11 S.R.O. No. 499/90, where clause 6 refers to manufacture as the specific requirement to claim exemption. The case of the fourth respondent was that the production of chilly powder and coriander powder does not involve any manufacturing process but for mere pulverization and hence that, they are not liable to be exempted from the purview of tax. The petitioner is challenging the logic and reasoning behind the classification made by the fourth respondent on many a ground, contending that exhibit P11 notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to, by the subsequent Full Bench in Tatson Food Industries v. State of Kerala [2000] 119 STC 265; [1999] 3 KLT 174 and the factual position as to whether chilly and chilly powder as well as coriander and coriander powder are the same, without involvement of any manufacturing process was directed to be considered afresh by the Tribunal and the matter was remanded accordingly. On the basis of the decision, rendered by the Full Bench in Tatson Food Industries v. State of Kerala [2000] 119 STC 265; [1999] 3 KLT 174 holding that turmeric and turmeric powder are two different entities involving a manufacturing process , the claim put forth by the petitioner in this regard was considered and it was also included in the cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ything is taken away by virtue of exhibit P11, since it is in supersession of S.R.O. No. 968/80. But on a closer scrutiny, the petitioner-establishment, being a small-scale industry certified as WIP unit, vide exhibit P2, stands entirely on a different footing and is covered by exhibit P10-S.R.O. No. 969/80. As per exhibit P10 G. O, Mini Industries, Women Industrial Units and also other SSI units set up by Harijans which started production before April 1, 1979, were eligible for exemption for a period of six years. This by itself shows that exhibit P10 S.R.O. No. 969/80, which was notified immediately after issuance of the other notification, i.e., S.R.O. No. 968/80 (referred to as superseded in exhibit P11) was intended to serve the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued are not liable to be enforced any further. In the above facts and circumstances, the impugned proceedings, exhibit P9 series, are set aside and the fourth respondent is directed to reconsider the matter in the light of the observations made above, as to the eligibility of the petitioner to have exemption based on exhibit P10 S.R.O. This exercise shall be pursued and finalised after giving an opportunity of hearing to the petitioner, as expeditiously as possible; at any rate within three months from the date of the receipt of copy of this judgment. In the light of the nature of relief granted as above, the question whether the making of chilly powder and coriander powder does involve any manufacturing process is left open. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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