First-sale taxation for soda and cola bars second-sale levy when the goods fall within the specified entry.

Soda and cola falling within entry 87 of the Kerala General Sales Tax Act, 1963 were taxable only at the first sale. Because the turnover in question represented a second sale, the levy in the assessee's hands was unsustainable. The assessment orders were set aside and the revision was allowed.

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Issues: Whether soda and cola sold by the assessee were taxable as second sales at her hands, or whether they fell under entry 87 of the First Schedule to the Kerala General Sales Tax Act, 1963 and were taxable only at the first sale.

Analysis: The assessment had proceeded on the footing that the turnover of soda and cola was taxable in the assessee's hands. The appellate forum had not interfered with that finding, but the revision court accepted the contention that entry 87 governed the goods and that, on the relevant facts, the commodities were taxable only at the first sale. Since the sale in question was a second sale, the levy at the assessee's hands was unsustainable.

Conclusion: The turnover of soda and cola was not taxable as second sales at the assessee's hands.

Final Conclusion: The assessment orders were set aside and the revision was allowed.

Ratio Decidendi: Where a commodity is covered by an entry making it taxable only at the first sale, it cannot be subjected to tax again as a second sale in the hands of the assessee.

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