TMI Blog2009 (3) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... latex into centrifuged latex cannot be treated as manufacture of a rubber product for the purpose of levy of tax under entry 39 of the First Schedule. Since the Department has not treated centrifuged latex as a rubber product at the hands of either the seller or purchaser there is no justification to demand tax at the purchase point of field latex. In view of the findings the writ appeal allowed and quash exhibit P33 circular to the extent it says that centrifuged latex is a rubber product up to March 31, 1988. - W.A. No. 878 of 2007 - - - Dated:- 6-3-2009 - RAMACHANDRAN NAIR C.N. AND SURENDRA MOHAN K. , JJ. The judgment of the court was delivered by C.N. RAMACHANDRAN NAIR J. The appellant is a member society engaged in pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centrifuged latex made by them treating both as rubber falling under entry 38 of the First Schedule to the Kerala General Sales Tax Act, 1963. Centrifuged latex is sold to industrial units for manufacture of rubber products. Since the Department treated centrifuged latex also as rubber taxable at last purchase the purchasers from the appellant were liable to pay tax. In order to ensure assessment and collection of tax from the purchasers the sellers were required to produce form No. 25 prescribed under rule 32(14) of the Kerala General Sales Tax Rules, 1963 obtained from the purchasers. The appellants produced form No. 25 on the sale of centrifuged latex and based on the same they were granted exemption. Even though the original assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging Circular No. 16/98. Besides challenging the circular the appellants have challenged the notices for revision of assessments which have ceased to exist now as revised assessments are already completed. The learned single judge rejected the writ petition on the ground that once the Tribunal's orders are confirmed by this court relegating the appellants to face assessment, there is no justification to challenge the circular in writ proceedings. It is against this judgment the appellants have filed the writ petition. We have heard Shri. V.P. Sukumar appearing for the appellant and Special Government Pleader appearing for the respondent. We are unable to uphold the view taken by the learned single judge because the appellants were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry 38 until April 1, 1988. But from April 1, 1988 field latex and centrifuged latex will be treated as one and the same commodity. The question to be considered is whether this circular is tenable or not. Writ petition has to be allowed for the simple reason that the very same Department treated centrifuged latex also as rubber and collected sales tax from the purchasers of the item from the appellant based on form No. 25 issued by purchasers furnished by the appellant. In other words the Department treated centrifuged latex at the hands of the purchaser from the appellant as rubber taxable at last purchase point under entry 38 and at the same time they want to treat the same centrifuged latex as rubber product in the hands of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The circular cannot be applied uniformly because if circular is upheld and assessment is held in the hands of the appellant the Department will be compelled to grant refund of tax collected from purchasers on centrifuged latex at last purchase point. Moreover in the appellant's case strangely the Department has no case that centrifuged latex is a rubber product which is taxable at sale point at entry 39. Therefore, going by the Department's own stand the appellant is not liable to pay sales tax on centrifuged latex as it is not a rubber product. As already found by us above centrifuged latex continues to be rubber taxable at last purchase point. So much so the conversion of field latex into centrifuged latex cannot be treated as m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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