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2009 (12) TMI 868 - KERALA HIGH COURTWhether assessee are liable to pay tax under section 5(3)(ii) of the Kerala General Sales Tax Act, 1963 for the differential tax on purchase of various items used in the manufacture of ice-cream which was stock transferred to outside State for sale in other States? Held that:- If goods are manufactured or packed for own consumption and not for sale, then still probably the industrial unit purchasing raw material or packing material for manufacture or packing of goods other than for sale will not be entitled to concessional rate. We, therefore, allow the revisions by reversing the orders of the Tribunal and that of the first appellate authority and direct the assessing officer to revise the assessment by cancelling the demand of differential tax under section 5(3)(ii) of the Act for the raw materials or packing materials purchased at concessional rate which are used in the manufacture or packing of goods for stock transfer. The question to be considered is whether purchase from SSI unit by availing of concessional rate will be sufficient compliance of payment in terms of column 8 of the Fifth Schedule. Since none of the authorities have considered the scope of exemption claimed by the assessee with reference to documents, we set aside the orders of the Tribunal and that of the first appellate authority on this issue and remand the matter to the assessing officer for reconsideration after giving opportunity to the assessee. The sales tax revisions are allowed to the extent indicated above.
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