TaxTMI 
TaxTMI 
1996 (11) TMI 445
X X X X Extracts X X X X
X X X X Extracts X X X X
....ision case. The said explanation is as follows: "Explanation.-Where a tax has been levied in respect of copra or coconut the tax leviable on coconut oil and coconut oil cake, produced out of such coconut or copra shall be reduced by the amount of tax levied on such copra or coconut." This Explanation clearly means that the tax leviable on coconut oil and coconut oil cake, produced out of coconut or copra in regard to which tax has been levied already, shall be reduced by the amount of tax levied on such copra or coconut. 2.. In other words the statutory position itself is crystal clear with regard to the reduction. 3.. The assessee is running an oil mill in the name and style of Messrs. Muttam Oil & Flour Mills. During the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed and having been forfeited to the Government has been ignored. The assessee approached the Kerala Sales Tax Appellate Tribunal, Additional Bench, Kozhikode and before the Tribunal, inter alia, other points were also urged. However, before us the only aspect that is urged is with regard to the claim for rebate and estimate in regard thereto. With regard to this aspect, the Tribunal has reproduced the above explanation. The Tribunal has also referred to the contention of the assessee that the tax has been levied in respect of copra and therefore the tax leviable on coconut oil produced out of such copra should be reduced by the amount of tax levied on such copra. In the process of reasoning the Tribunal has also referred to the factual posi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the question in the light of the explanation reproduced at the outset. 6.. Although the situation is plain language of the explanation the Tribunal has referred to its own decision in the case of Ashoka Oil Mills v. State of Kerala in Tribunal Appeal Nos. 3 and 4 of 1991 dated May 17, 1991 adding that both the members deciding the present proceedings were parties to the earlier decision. In fact para No. 5 of the earlier judgment has been reproduced ad verbatim in the order of the Tribunal. The decision has also considered the plain reading of explanation to mean that a reduction in tax equal to the amount of tax levied on the purchase turnover of copra will be allowed from the tax leviable under the Kerala General Sales Tax Act on coc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nstrued strictly. The Tribunal has proceeded to consider the situation that tax on coconut oil cake was exempted during the year in question leading to the consequence that the amount collected by way of sales tax and additional sales tax would result in its forfeiture to Government. In view of this situation it appears the Tribunal seems to have observed that the tax leviable is not on the coconut oil cake alone, if reduction is to be considered, but it has to be leviable both on coconut oil and coconut oil cake. If this is not the situation reduction cannot be claimed for either one of the above. 9. In our judgment the approach of the Tribunal is wholly contrary to the letter and spirit of the language of the explanation. It is ....