IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE A.K.BASHEER WEDNESDAY, THE 2ND JULY 2008 / 11TH ASHADHA 1930 T.R.C.No. 33 of 1998 ---------------- ------------------- ORDER DATED 26.3.1996 IN TA.583/1995 OF THE KERALA SALES TAX APPELLATE TRIBUNAL,ADDITIONAL .BENCH, PALAKKAD .................... REVISION PETITIONER/RESPONDENT/REVENUE: ---------------------------------------------------------------------- THE DEPUTY COMMISSIONER (LAW) BOARD OF REVENUE (TAXES) ERNAKULAM. BY SR.GOVERNMENT PLEADER SRI.MUHAMMED RAFIQ RESPONDENT/APPELLANT/ASSESSEE: ------------------------------------------------------- NAVABHARATH CAPTIVE POWER SYSTEM, V/262 – ATHICODE, NATTUKAL- P.O., PALAKKAD DISTRICT. BY ADV. SRI.S.ARUN RAJ THIS TAX REVISION CASE HAVING COME UP FOR ORDERS ON 02/07/2008, ALONG WITH TRC NO.59 OF 1998, TRC NO.79 OF 1998, TRC NO.68 OF 1998 AND S.T.REV.NO.369 OF 2004, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: H.L.DATTU, C.J. & A.K.BASHEER, J. ------------------------------------------------------------------ T.R.C.Nos.33 of 1998, 59 of 1998, 68 of 1998 , 79 of 1998 & S.T.Rev.No.369 of 2004 ------------------------------------------------------- Dated, this the 2nd day of July, 2008 O R D E R H.L.Dattu, C.J. Sri.S.Arun Raj takes notice for the respondents/assessees. 2. Since common questions of law and fact are involved in these revision petitions, they are clubbed together, heard and disposed of by this common order. 3. The Revenue is before us in these revision petitions, inter alia, questioning the orders passed by the Sales Tax Appellate Tribunal in T.A.Nos.583 of 1995, 585 of 1995, 584 of 1995, 586 of 1995 dated 26-3-1996 and & T.A.No.294 of 1997dated 29-8-2001 for the assessment years 1991-1992, 1993-1994, 1992-1993, 1994-1995 and 1995-996 respectively. These assessments had been completed by the assessing authority under the provisions of the Central Sales Tax Act. The assessees before the assessing authority had claimed reduced rate of tax relying upon the Notification issued by the State Government in S.R.O.No.434/1991. The assessing authority had rejected the claim of T.R.C.Nos.33 of 1998, 59 of 1998, 68 of 1998 , 79 of 1998 & S.T.Rev.No.369 of 2004 -2- the assessees on the ground that the said Notification can be applied while completing the central sales tax assessment provided the Notification grants general exemption and not under special circumstances. Since the assessees had not produced C-Forms, the assessing authority had levied tax at the rate of 10%. 4. The said order of the assessing authority had been questioned by the assessees before the first appellate authority. The first appellate authority has confirmed the orders passed by the assessing authority. 5. In the appeals filed before the Tribunal, the Tribunal has reversed the thinking of the assessing authority as well as the first appellate authority. That is how the Revenue is before us in these tax revision cases. 6. The one and the only question that would arise for our consideration and decision is Whether the Notification in S.R.O.No.434/1991 grants a conditional exemption or special exemption? The said Notification is as under: T.R.C.Nos.33 of 1998, 59 of 1998, 68 of 1998 , 79 of 1998 & S.T.Rev.No.369 of 2004 -3- “SRO.434/91...............hereby make a reduction in the rates of tax payable under the said Act for a period of three years on the sale of the goods specified in column (2) of the Schedule below to the rates specified in Column (3) thereof against each namely: SCHEDULE ----------------------------------------------------------------------------- Serial Description of Revised rates No. goods. of tax ----------------------------------------------------------------------------- (1) (2) (3) 1. xx xx x 2. xx xx x 3. Composite diesel generator sets 1% assembled within the State. ----------------------------------------------------------------------------- This notification shall come into force with effect from the Ist day of April, 1991, (note G.O.(P) No.57/91/T dated 30-3-1991 published in KG Ex.No.443 dated 30-3-1991). Superseded by SRO No.370/92. (By Order of the Governor) (Exemption continued as per SRO.370/92, 1728/93 & 1345/94). 7. A perusal of the said Notification clearly indicates that it is under special circumstances the reduced rate of tax is made applicable to the dealers dealing in diesel generators T.R.C.Nos.33 of 1998, 59 of 1998, 68 of 1998 , 79 of 1998 & S.T.Rev.No.369 of 2004 -4- which are assembled within the State. By no stretch of imagination the said Notification can be considered as a general Notification. 8. This Court had an occasion to consider more or less the similar issue in the case of P.N.Sadasivan Vs. State of Kerala (S.T.Rev.No.300 of 2003 and connected cases) disposed of on 2nd August, 2007. In the said decision this Court was pleased to observe as under: “17. In the instant case, as we have already noticed that the order passed by the State Government granting certain exemption is only on finished rubber goods produced/manufactured in the factories in Kerala and it is only those industries which will be entitled for reduced rate of tax. In such circumstances, by no stretch of imagination, the said notification can be said to be a notification granting general exemption from payment of sales tax liability. In that view of the matter the assessee cannot press into service the provisions of Section 8 (2A) of the Act for grant of reduced rate of tax under the CST Act.” 9. In view of the above, the revision petitions filed by the T.R.C.Nos.33 of 1998, 59 of 1998, 68 of 1998 , 79 of 1998 & S.T.Rev.No.369 of 2004 -5- State require to be allowed and the orders passed by the Tribunal requires to be set aside. Ordered accordingly. (H.L.DATTU) CHIEF JUSTICE (A.K.BASHEER) JUDGE MS