2012 (4) TMI 542

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....rifuged latex. Even though centrifuged latex is concentrated latex, processed and preserved, and is a value added product, the charging entry in the Schedule of the Sales Tax Act provides for levy of tax on rubber in all its forms referred therein at the last purchase point in the State. This is the position declared by the Supreme Court in assessee's case vide judgment reported in State of Kerala v. Kurian Abraham Pvt. Ltd. [2008] 13 VST 1 (SC); [2008] 303 ITR 284 (SC). However, since field latex is used in the production of centrifuged latex, and since the Division Bench of this court in an earlier judgment held that both are different products, the respondent voluntarily filed returns declaring tax liability on the purchase value of ....

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....ing both sides, what we notice is that the fundamental basis on which the Tribunal decided the issue based on the decision of the Supreme Court in Corporation Bank v. Saraswati Abharansala [2009] 19 VST 84 (SC), is wrong. In this case, tax was paid by the respondent voluntarily and the tax paid is on raw material which normally goes to add to the cost of raw material and is passed on to customer along with product price. So much so, the tax remitted by the respondent on which refund is claimed is the tax collected when the product is sold as part of price. It is in this context only, the State has relied on the notification issued by the State, namely, S.R.O. No. 695/2003 to the effect that the tax paid on field latex which is raw material ....