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of <h1>Tax revision case remanded for reevaluation by Sales Tax Appellate Tribunal</h1> <h3>Lamina Suspension Products (P) Ltd. Versus State of Kerala</h3> Lamina Suspension Products (P) Ltd. Versus State of Kerala - [1994] 95 STC 459 (Ker) Issues:Assessment of turnover of fasteners under Kerala General Sales Tax Act - Whether fasteners sold by assessee fall under entry 125 or entry 99 of First Schedule - Proper consideration by statutory authorities.Analysis:The judgment pertains to the assessment of the turnover of fasteners under the Kerala General Sales Tax Act for the assessment years 1987-88 and 1988-89. The common petitioner, a private limited company and automobile dealer, challenged the reopening of assessments under section 19(1) of the Act, arguing that fasteners should be taxed at 6% under entry 99, not 15% under entry 125. The Sales Tax Appellate Tribunal upheld the assessments, considering fasteners as automobile parts under entry 125. The revision petitioner contended that fasteners were nuts and bolts, not automobile parts, citing a previous court decision.The main argument centered on whether the fasteners sold by the assessee were properly classified as automobile parts falling under entry 125 or as general goods under entry 99. The petitioner asserted that the fasteners were nuts and bolts with multiple uses, not specifically designed for automobiles. The court noted discrepancies in the statutory authorities' treatment of the issue, emphasizing the need for a clear determination of the nature of the fasteners sold before deciding the applicable tax entry.The court found that the Appellate Tribunal failed to address the core question of the exact nature of the fasteners marketed by the assessee. It directed a remit of the matter for proper consideration, emphasizing the importance of determining the specific goods sold before applying the relevant tax entry. The court highlighted the inadequacy of the authorities' findings and instructed a thorough examination of the nature of the fasteners to ensure correct tax classification.In conclusion, the court allowed the tax revision cases, ordering a rehearing by the Sales Tax Appellate Tribunal to determine the nature of the fasteners and make appropriate orders promptly. Additionally, the court addressed revenue recovery proceedings, directing the release of attached goods upon sufficient security provided by the assessing authority. The judgment emphasized the need for a comprehensive assessment of the goods sold before determining the applicable tax entry under the Kerala General Sales Tax Act.
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