TMI Blog1998 (11) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... iscuits outside Kerala. 2.. The notifications exhibit P1 (SRO No. 1728 of 1993) and exhibit P2 (SRO No. 429 of 1995) were subsequently amended by SRO No. 585 of 1996, SRO Nos. 214 of 1997, 217 of 1997 and 294 of 1998. By virtue of the notification SRO No. 1728 of 1993 biscuit manufacturing units within the State were given concessional rate of tax at 4 per cent as against 10 per cent payable by the petitioners who manufacture their biscuits outside Kerala bring it on stock transfer and sell the same in Kerala. Biscuit is an item taxable at the point of first sale at 10 per cent as item 17 in the First Schedule to the Kerala General Sales Tax Act, 1963. Providing for the biscuit manufacturing units within the State alone 4 per cent of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Punjab [1990] 77 STC 82; (1990) 3 SCC 87 and Shree Mahavir Oil Mills v. State of Jammu and Kashmir [1997] 104 STC 148; (1996) 11 SCC 39 declared that the exemption granted to the local manufacturers of products of village industries is violative of articles 301 and 304(a) of the Constitution of India. I find that the situations are identical. The ratio laid down by the Supreme Court in Shree Mahavir Oil Mills case [1997] 104 STC 148; (1996) 11 SCC 39 referred above applies to the facts of this case also. The Supreme Court held that the power of the State to levy tax on goods imported from other States cannot be exercised to effect discrimination between imported goods and similar goods manufactured or produced locally. 5.. The stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he SSI units irrespective of the place of manufacture are entitled for the same treatment. The denial of the same rate of tax to SSI units having factories outside Kerala is a discrimination and violative of articles 301 and 304(a) of the Constitution. 7.. For the above reasons, exhibit P2 notification as amended from time to time is quashed to the extent of granting concessional rate of sales tax at 4 per cent on biscuits manufactured by SSI units in Kerala alone and it is declared that the concessional rate is available to all SSI units manufacturing biscuits outside Kerala. In the circumstances, the declaration of invalidity of impugned notification shall take effect from the date of this judgment. The petitioner shall not be entitle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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