1998 (11) TMI 646

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....re that the concessional rate is available to all small-scale industrial units, which manufacture biscuits outside Kerala.   2.. The notifications exhibit P1 (SRO No. 1728 of 1993) and exhibit P2 (SRO No. 429 of 1995) were subsequently amended by SRO No. 585 of 1996, SRO Nos. 214 of 1997, 217 of 1997 and 294 of 1998. By virtue of the notification SRO No. 1728 of 1993 biscuit manufacturing units within the State were given concessional rate of tax at 4 per cent as against 10 per cent payable by the petitioners who manufacture their biscuits outside Kerala bring it on stock transfer and sell the same in Kerala. Biscuit is an item taxable at the point of first sale at 10 per cent as item 17 in the First Schedule to the Kerala General S....

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....erala. The learned Judge following the decisions of the Supreme Court in Video Electronics Pvt. Ltd. v. State of Punjab [1990] 77 STC 82; (1990) 3 SCC 87 and Shree Mahavir Oil Mills v. State of Jammu and Kashmir [1997] 104 STC 148; (1996) 11 SCC 39 declared that the exemption granted to the local manufacturers of products of village industries is violative of articles 301 and 304(a) of the Constitution of India. I find that the situations are identical. The ratio laid down by the Supreme Court in Shree Mahavir Oil Mills' case [1997] 104 STC 148; (1996) 11 SCC 39 referred above applies to the facts of this case also. The Supreme Court held that the power of the State to levy tax on goods imported from other States cannot be exercised to effe....