Purchase tax liability survives seller exemption where section 5A conditions are met, and binding precedent must be followed.

An exemption granted to selling SSI units from sales tax does not, by itself, exempt the buyer from purchase tax under section 5A of the Kerala General Sales Tax Act, 1963, where the statutory conditions for levy are otherwise satisfied. The Kerala High Court also reaffirmed judicial discipline by holding that a later Bench must follow earlier binding Division Bench rulings on the same point. On that basis, purchase tax liability was upheld against the assessee, and the connected petitions were not entertained further on merits.

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Issues: Whether a dealer purchasing PVC pipes or other goods from SSI units exempted from sales tax under a Government notification is liable to purchase tax under section 5A of the Kerala General Sales Tax Act, 1963.

Analysis: The exemption granted to the selling SSI units under section 10 of the Kerala General Sales Tax Act, 1963 does not by itself exempt the purchaser from purchase tax. The issue had already been decided in earlier Division Bench decisions of the same High Court, and the Court held that those decisions bound the later Bench. The Court reiterated that judicial discipline requires consistent adherence to binding precedent, and that the levy under section 5A applies when the statutory conditions are satisfied, notwithstanding the seller's exemption from sales tax.

Conclusion: The liability to purchase tax under section 5A was upheld against the assessee and in favour of the Revenue.

Final Conclusion: The questions of law were answered against the assessees, and the connected petitions were not entertained further on merits.

Ratio Decidendi: An exemption granted to the seller under a sales tax notification does not prevent levy of purchase tax on the buyer where the statutory requirements of section 5A are satisfied, and a later Bench of the same High Court must follow an earlier binding Division Bench decision on the same point.

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