TaxTMI 
TaxTMI 
2009 (3) TMI 941
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....ubes, clinical examination gloves, etc. The original entries in the Sales Tax Act providing for sales tax on various forms of rubber are the following: "38. Rubber excluding synthetic rubber At the point of last purchase in the State by a dealer who is liable to tax under section 5. 39. Rubber products other than those specifically mentioned in this Schedule. At the point of first sale in the State by a dealer who is liable to tax under section 5." Entry 38 was later substituted covering rubber in all forms under one single entry all of which were made taxable at the point of last purchase in the State. These are: "Raw rubber, latex, dry ribbed sheet of all RMA grades, tree lace, earth scrap, ammoniated latex, preserved latex, late....
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.... to purchase drums by availing concessional rate under section 5(3) of the KGST Act as centrifuged latex is different from field latex. Based on this decision the Deputy Commissioner set aside the assessments of the petitioners for all the years vide exhibit P26 and remanded the case for fresh assessment. Even though the petitioner challenged the orders of the Deputy Commissioner before the Tribunal the Tribunal referred to Circular 16/98 issued by the Board of Revenue and remanded the case for reassessment based on circular. In the revision petition filed by the appellant before this court and in the review filed against the judgment in the said revision case this court did not interfere with the orders of the Tribunal. We are told that pu....
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....nal or the High Court and de hors the circular the Tribunal and the High Court are free to decide the validity of assessments. However, this does not mean that the parties aggrieved cannot challenge a circular if it is otherwise not tenable. This is a case where the appellants are in perpetual contest against sales tax assessment pertaining to a period which is 20 to 30 years back. Therefore, if challenge against the circular can achieve finality certainly the court should entertain the writ petition and put a quietus to the matter. We are therefore of the view that the writ petition is maintainable and therefore, we proceed to decide the appellant's challenge against exhibit P33 circular. The basis of the circular is decision of this ....
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....r in all its forms are made taxable at the point of last purchase in the State. Rubber latex obtained from the tree is a highly perishable commodity and for marketing the produce various processes are engaged by planters and rubber processors. Even though there is value addition in centrifuging, it is nothing but a process of preservation and concentration of field latex. When rubber is converted from one form to another, it does not become a rubber product and so much so even prior to the amendment, the word "rubber" used in entry 38 meant to cover rubber in all its forms. In fact the Department has accepted this position and that is the reason why the appellant was originally granted exemption on field latex purchased and centrifuged late....