TMI Blog2001 (11) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... ting that it is entitled to sales tax exemption as an SSI unit manufacturing centrifuged latex. The certificate produced as annexure I provides for exemption from October 3, 1991 to October 2, 1998. The assessee has claimed exemption on the purchase of field rubber latex and on sale of centrifuged latex. The assessee's main contention is that the field latex and centrifuged latex are different forms of one and the same commodity, namely, rubber, coming under entry No. 110 of the First Schedule to the Kerala General Sales Tax Act, 1963 taxable only once at the point of last purchase in the State. According to the assessee the certificate of exemption applied for and obtained and produced as annexure I is only an alternate claim, i.e., only i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption on purchase turnover of field latex claimed by the assessee. With regard to exemption claimed by the assessee under Notification Nos. 1003/91 and 1727/93 the Tribunal held that centrifuged latex has not been subjected to tax either under the KGST Act or under the CST Act, which is a condition under the notifications for granting the benefit to the assessee. In these tax revision cases, the assessee has challenged all the grounds found against them by the Tribunal. 3.. We have heard Sri C.K. Thanu Pillai, counsel for the assessee and Sri Georgekutty Mathew, Government Pleader for the department. 4.. Sri C.K. Thanu Pillai, learned counsel for the assessee, relying on the circular referred to above contended that eventhough fie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of centrifuged latex from field latex. Therefore, in view of our decision in T.R.C. No. 37 of 2001, and the exemption certificate obtained by the assessee declaring that centrifuged latex is a manufactured product, we do not think that the assessee's contention that rubber in all its form will attract tax only at one point will stand. Accordingly, the assessee will be the last purchaser of field latex used in the manufacture of centrifuged latex and assessee cannot claim exemption by virtue of the fact that both the field latex and centrifuged latex come under entry 110 of the First Schedule to the KGST Act. 6.. The next point raised by the assessee is that the assessee is entitled to exemption from tax on purchase turnover of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of centrifuged latex are concerned, the assessee has obtained form No. 25 from the purchasers who are registered dealers in Kerala and the assessee was also granted exemption on the basis of form No. 25 furnished by it. Consistent with the view taken by us above, we have to hold that the centrifuged latex is "rubber goods" manufactured out of field latex and the first condition of the notification is satisfied. So far as the inter-State sale of centrifuged latex is concerned, the assessee has collected Central sales tax and remitted the same, which is evident from the Central sales tax assessment orders produced in the tax revision cases. Therefore the assessee is entitled to exemption on the purchase turnover of field latex used in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the decision of the Supreme Court in State of Kerala v. Madras Rubber Factory Ltd. [1998] 108 STC 583, and it has no significance to the extent of the turnover of field latex exempt in the hands of the assessee. Therefore there is no scope for independent levy of tax on rubber cess, as the same is only a component of the taxable turnover. 8.. The assessee has a case that it is entitled to sales tax exemption in terms of certificate of exemption obtained from the Industries Department and produced as annexure I in the tax revision cases. We feel that it has no relevance because the product, namely, centrifuged latex, is taxable at last purchase point and the assessee is granted exemption on the basis of form No. 25 obtained and produced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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