TaxTMI 
TaxTMI 
2001 (11) TMI 1000
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....btained certificate of exemption from the Industries Department stating that it is entitled to sales tax exemption as an SSI unit manufacturing centrifuged latex. The certificate produced as annexure I provides for exemption from October 3, 1991 to October 2, 1998. The assessee has claimed exemption on the purchase of field rubber latex and on sale of centrifuged latex. The assessee's main contention is that the field latex and centrifuged latex are different forms of one and the same commodity, namely, rubber, coming under entry No. 110 of the First Schedule to the Kerala General Sales Tax Act, 1963 taxable only once at the point of last purchase in the State. According to the assessee the certificate of exemption applied for and obtained ....
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.... is a manufactured product. Accordingly the Tribunal declined the exemption on purchase turnover of field latex claimed by the assessee. With regard to exemption claimed by the assessee under Notification Nos. 1003/91 and 1727/93 the Tribunal held that centrifuged latex has not been subjected to tax either under the KGST Act or under the CST Act, which is a condition under the notifications for granting the benefit to the assessee. In these tax revision cases, the assessee has challenged all the grounds found against them by the Tribunal. 3.. We have heard Sri C.K. Thanu Pillai, counsel for the assessee and Sri Georgekutty Mathew, Government Pleader for the department. 4.. Sri C.K. Thanu Pillai, learned counsel for the assessee, relying ....
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....x revision case, stating that the assessee is engaged in the manufacture of centrifuged latex from field latex. Therefore, in view of our decision in T.R.C. No. 37 of 2001, and the exemption certificate obtained by the assessee declaring that centrifuged latex is a manufactured product, we do not think that the assessee's contention that rubber in all its form will attract tax only at one point will stand. Accordingly, the assessee will be the last purchaser of field latex used in the manufacture of centrifuged latex and assessee cannot claim exemption by virtue of the fact that both the field latex and centrifuged latex come under entry 110 of the First Schedule to the KGST Act. 6.. The next point raised by the assessee is that the assess....
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....cerned, the assessee has obtained form No. 25 from the purchasers who are registered dealers in Kerala and the assessee was also granted exemption on the basis of form No. 25 furnished by it. Consistent with the view taken by us above, we have to hold that the centrifuged latex is "rubber goods" manufactured out of field latex and the first condition of the notification is satisfied. So far as the inter-State sale of centrifuged latex is concerned, the assessee has collected Central sales tax and remitted the same, which is evident from the Central sales tax assessment orders produced in the tax revision cases. Therefore the assessee is entitled to exemption on the purchase turnover of field latex used in the manufacture of centrifuged lat....