1998 (8) TMI 555

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.... a short question for consideration whether under the Explanation to entry 51 of the First Schedule appended to the Kerala General Sales Tax Act, 1963 the assessee would be entitled to the reduction of tax leviable on coconut oil from the tax levied on the purchase turnover of copra or coconut, from which the coconut oil was produced. 2.. The Appellate Tribunal took the view that under the Expl....

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....uld be subjected to levy of tax before considering the claim of reduction in regard thereto. Such a consideration is not possible in view of the situation that tax collected by the assessee with regard to coconut oil cake is forfeited to the Government. If it is forfeited to the Government, the situation will have to be understood for the purpose of consideration of benefit of explanation not in t....

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....ills v. State of Kerala [1998] 109 STC 182; 1997 KLJ (TC) 114 it must be held that the assessee would be entitled to reduction of tax leviable on the turnover of coconut oil by the amount of tax levied on the purchase turnover of copra or coconut, from which the coconut oil was produced. Explanation to entry 51 was introduced to avoid double taxation. The rationale underlying the Explanation is th....

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....il and coconut oil cake both are simultaneously produced and, therefore, from the angle of drafting, the use of conjunction "and" is necessary. The Explanation does not indicate that if coconut oil cake a by-product is not chargeable to tax, then tax leviable on coconut oil will not be reduced by the amount of tax levied on the copra or coconut, from which the coconut oil was produced. We are, the....