TMI Blog2003 (7) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... e of rubberised coir mattresses, pillows, cushions, bath mats, packing material, etc., in the name and style of Fibre Foam (P) Limited at Baliapattam, Cannanore. In the assessment for the year 1991-92 both under the KGST Act and under the CST Act assessee claimed exemption in respect of the sales turnover of rubberised coir products manufactured by it for the period from January 1, 1992 to March 31, 2002 under the Notification, S.R.O. No. 432/91. The assessing authority on the basis of a certificate dated February 23, 1997 issued by M/s. Intercontinental Marketing Corporation, Ernakulam, the sole selling agents of the petitioner, in which they have certified that they sold fibre foam products for Rs. 96,62,091 and remitted the tax due there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther pointed out that the purchase of rubber latex effected by the assessee was granted exemption under S.R.O. No. 585/80, which is available only for the purchase of raw materials used in the manufacture of rubberised products by small scale rubber industrial units. The counsel also submitted that the certificate issued by their sole selling agents relied on by the authorities only says that they had sold the products of the assessee, whose name is fibre foam. The counsel accordingly submitted that the authorities and the Tribunal were not justified in denying exemption under the Notification, S.R.O. No. 432/91 to the petitioner. 3.. The learned Government Pleader appearing for the respondent on the other hand submits that the product of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of rubber products. The assessing authority had granted the concessional rate of 3 per cent to the petitioner under the said notification. From the aforesaid conduct of the assessing authority, it would appear that the assessing authority himself had treated the product of the petitioner as rubberised coir product. 5.. However, the question is not as to whether the product of the petitioner is a rubberised coir product. The real question is whether the product of the petitioner is fibre foam. This distinction is required to be drawn only because the Government in their Notification S.R.O. No. 432/91 had granted exemption only in respect of rubberised coir products other than fibre foam. It would appear that even the Government ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, are sold. 6.. According to us, none of the authorities, including the Tribunal had addressed the question in the proper perspective. The assessing authority and the two appellate authorities, instead of searching for evidences in the form of correspondence, etc., should have verified the very product of the assessee with respect to which the exemption was claimed either by directing the assessee to produce the product before the assessing authority or before the appellate authorities. The appellate authorities could have even directed the assessing authority to conduct an inspection of the said product by visiting the petitioner's premises and find out as to what exactly was the product of the petitioner. On an inspection of the produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the form of an explanation introduced in entry 111. According to us, the provisions of entry 111 and the explanation thereto inserted by the Finance Act, 1992 has no relevance for the purpose of deciding the question for the assessment year 1991-92. We also do not find any merit in the submission of the Government Pleader that the expression "fibre foam" is defined in the form of an explanation which has got retrospective effect, for the reason that the expression "fibre foam" was not available in any of the entries in the First Schedule for making the clarification during the relevant period. 8.. Since the matter relates to the assessment year 1991-92, we direct the assessing authority to pass fresh orders as directed in this judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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