IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 24TH AUGUST 2009 / 2ND BHADRA 1931 ST.Rev..No. 122 of 2009() ------------------------- TA.190/2007 of S.T.A.TRIBUNAL,ADDL.BENCH,PALAKKAD .................... PETITIONER/RESPONDENT/REVENUE: --------------------------------------- STATE OF KERALA, REPRESENTED BY JOINT COMMISSIONER (LAW), COMMERCIAL TAXES, ERNAKULAM. BY SPL. G.P. SRI.VINOD CHANDRAN RESPONDENT(S): APPELLANT/ASSESSEE: ---------------------------------- M/S.DORCAS MARKET MAKERS (P) LIMITED, ALWAYE. ADV. SMT.K.LATHA FOR R THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ALONG WITH STRV NO.123/2009 & CONN. CASES ON 24/08/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... S.T. Rev. Nos.122,123 & 127 of 2009 & W.P.(C) No.22316 of 2009 .................................................................... Dated this the 24th day of August, 2009. ORDER Ramachandran Nair, J. The question raised before the Tribunal was whether the respondent-assessee is entitled to reduced rate of tax on soap manufactured and sold by it. Admittedly the reduced rate is applicable to handmade soap and the assessee's claim is that the soap sold by it is handmade. Four years assessments commencing from 2000-2001 were completed disallowing the claim, against which first appeals filed were rejected because for the year 1999-2000 the claim allowed was set aside and remanded by the Deputy Commissioner in suo moto revision under Section 35 of the KGST Act. The first appeals were unsuccessful and when assessee filed second appeals, the Tribunal remanded one year's assessment to the officer for conducting enquiry and for deciding the matter afresh. The Special Government Pleader appearing for the State contended that the Commissioner constituted an 2 inspection team for conducting inspection on 17.8.2009. In any case the remanded assessment is not so far revised after enquiry. However, when appeals against later assessments came before the Tribunal, the Tribunal allowed the claim based on certain orders from other States produced by the assessee. It is against these assessments the three connected revision cases are filed. 2. The case of the State is that the Tribunal should not have allowed the claim based on orders obtained from other States which is against the decision of the Tribunal to get an enquiry conducted by the department on the factual position. Even though counsel appearing for the assessee wanted time to engage a Senior counsel, we feel evidence is not available to decide the issue and therefore what is required is enquiry and collection of evidence and assessee also can adduce the same during factory-inspection. What is required to be proved is that the soap marketed in Kerala was handmade soap, which can be proved only after inspection of the factory and any other place of manufacture. In the circumstances, the Tribunal rightly remanded the case for the earlier year and they should not have decided the case on merits for 3 other years without waiting for the result of enquiry and order in the remanded case. In the circumstances, we allow the revision cases by setting aside the orders of the Tribunal and that of the first appellate authority and remand the matter to the Assessing Officer to complete the assessments after conducting inspection and enquiry by the team constituted by the Commissioner, within a period of three months from the date of receipt of copy of this judgment. The subsequent year's assessment also should be completed based on enquiry report. A copy of the detailed enquiry report should be furnished to the assessee before pre-assessment notice is issued and assessee should be given opportunity to file reply and adduce evidence. In view of the judgment in the revision cases, the W.P.(C) has become infructuous and is closed as such. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms