2009 (12) TMI 868

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....nufacturer of ice-cream under brand name and for manufacture of ice-cream, the petitioner purchased various raw materials and packing materials by availing of concessional rate under section 5(3)(i) of the KGST Act. According to the petitioner, prior to the amendment by the Finance Act, 2000 with effect from April 1, 2000, the proviso to section 5(3)(i) made a condition that the items manufactured or packed with the raw materials or packing materials purchased by availing of concessional rate should be sold within the State or from Kerala as interState sale, so that the product suffers sales tax in Kerala either under the KGST Act or under the CST Act. However, from April 1, 2000 the proviso was deleted and consequently even if the item man....

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....oods furnishes to the assessing authority in the prescribed manner declaration duly filled in and signed by the dealer to whom the goods are sold containing the prescribed particulars in the prescribed form. (ii) Where any dealer, after purchasing any goods by furnishing a declaration as mentioned in the proviso to clause (i), fails to make use of the same he shall be liable to pay the tax that would have been payable by him, had the declaration not been furnished, less the tax, if any, paid by him and the same shall be levied and collected as if it is a tax due from him." The first proviso that was there in section 5(3)(i) up to March 31, 2000 provided that an industry availing of concessional rate for purchase of raw materials or pa....

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....d from the State. The next question to be considered is whether the main clause still imposes the condition that the goods produced or packed should be sold in or from Kerala for availing of concessional rate for the purchase of raw materials or packing materials for its manufacture or packing. In our view, the only condition for availing of concessional rate is manufacture or packing of goods within the State and it's sale may take place anywhere. The production or packing of goods for sale only means that the goods are for the purpose of trade and not for own consumption. In other words, if goods are manufactured or packed for own consumption and not for sale, then still probably the industrial unit purchasing raw material or packing ....