IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN TUESDAY, THE 8TH SEPTEMBER, 2009 / 17TH BHADRA, 1931 ST.Rev..No. 344 of 2008 (TA.352/2004 of S.T.A.T., ADDL.BENCH-II, ERNAKULAM) .................... REVISION PETITONER/APPELLANT/ASSESSEE: ------------------------------------------------------------------ M/S.TRANSWORLD OIL PRIVATE LTD., A E C NAGER, AIMURY, KOOVAPPADY, PERUMBAVOOR, REPRESENTED BY THE GENERAL MANAGER, R.R.SARMA. BY ADV. SRI.C.K.THANU PILLAI RESPONDENT/RESPONDENT/REVENUE: -------------------------------------------------------- THE STATE OF KERALA. BY GOVERNMENT PLEADER SRI.MOHAMMED RAFFIQ. THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 08/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. --------------------------------------------- S.T.Rev.No. 344 of 2008 --------------------------------------------- Dated this the 8th day of September, 2009 J U D G M E N T Ramachandran Nair,J: Petitioner is an oil mill engaged in production of coconut oil from copra and is also engaged in trading in coconut oil. During the year 1997-98, the petitioner purchased coconut oil locally and made interstate sale, without payment of tax on the ground that the petitioner is entitled to exemption from tax on interstate sale of coconut oil under S.R.O.No.1731/93. Besides claiming exemption on coconut oil sold interstate, the petitioner claims concessional rate on interstate sale of coconut oil cake based on the same notification. However, the assessments denying the claim are confirmed in appeal and therefore, this revision is filed against the order of the S.T.Rev. NO. 344 of 2008 :-2-: Tribunal. 2. We have heard learned counsel appearing for the petitioner and the learned Government Pleader appearing for the respondent. 3. On going through the orders and the documents produced, we are of the view that the petitioner is entitled to exemption on interstate sale of coconut oil, only if proof is produced about levy of tax on the coconut oil purchased in the State. The bills produced by the petitioner would show that the supplier has not charged any sales tax, even though they have endorsed a declaration in terms of Rule 32(13) of the Kerala General Sales Tax Rules, 1963. We do not think, such an endorsement in one invoice is sufficient towards proof of levy of tax on first sale of coconut oil within the State. Consequently, the petitioner was rightly declined exemption on interstate sale of coconut oil. S.T.Rev. NO. 344 of 2008 :-3-: However, Government Order provides for only 2% tax on interstate sale of coconut oil. Therefore, this Sales Tax Revision on this issue is allowed in part by directing the Assessing Officer to modify the assessment on interstate sale of coconut oil at 2%. 4. So far as the claim of the petitioner for concessional rate of tax at 2% on coconut oil cake is concerned, even though the petitioner has given a statement produced before this Court, showing the net sale of coconut oil cake at Rs.13,94,600/-, the appellate authority found that there is no proof of sale of coconut oil cake. It is, this order, the Tribunal has confirmed. Counsel for the petitioner submits that the Tribunal did not verify the records and that is the reason why the claim was rejected. We are of the view that the petitioner should not be denied the benefit of concessional rate of tax on the sale of coconut oil cake, if, in fact, the petitioner has S.T.Rev. NO. 344 of 2008 :-4-: declared the interstate sales turnover of coconut oil cake in the return filed. We, therefore, direct the Assessing Officer to verify the monthly returns filed, to ascertain the interstate sales turnover of the coconut oil cake, if any, made by the petitioner and if so, to grant concessional rate of tax on such interstate sales turnover of the coconut oil cake covered by the returns filed. The interlocutory application (I.A.No.2694 of 2008) does not survive and is closed. C.N.Ramachandran Nair, Judge. V.K.Mohanan, Judge. MBS/ S.T.Rev. NO. 344 of 2008 :-5-: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. --------------------------------------------------- I.T.A.NO. OF 200 -------------------------------------- ------ S.T.Rev. NO. 344 of 2008 :-6-: J U D G M E N T DATED: -9-2009 S.T.Rev. NO. 344 of 2008 :-7-: