Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 877 - HC - VAT and Sales TaxDemand of tax - Entitlement for benefit of SRO 641/81 - Whether the Tribunal had erred in fact and in law in holding that 'rubber compound' processed by the assessee is not the same as 'compound of rubber' - Held that:- while the State has failed to show that the article manufactured by the assessee is 'compound of rubber' and not a 'rubber compound', the assessee has succeeded in establishing that what it manufactures through its unit in relation to which the impugned assessments were made is a finished product, by whatever name it is called, and such finished rubber product is one that does not fall within the exclusion made by SRO 1516/90 and hence, the assessee is entitled to reduced rate of tax on the purchase of rubber for the manufacture of that product which is manufactured in its unit within the State of Kerala. Having held as aforesaid, on an interpretation of the notifications and by answering the questions formulated and remitted for consideration through the remand order of the Honourable Supreme Court of India, an independent consideration of the grounds raised in the captioned original petitions are not called for. They also stand concluded by the findings herein. Therefore, the petitioner/assessee is entitled to the benefit of SRO 641/81 notwithstanding SRO 1516/90 and is therefore bound to pay tax only at reduced rate on the purchase of rubber for the manufacture of its product through its unit to which the assessments leading to the captioned sales tax revisions relate; be the product called `compound of rubber' or `rubber compound'. - Decided partly in favour of petitioner
|