IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY THURSDAY, THE 20TH JANUARY 2011 / 30TH POUSHA 1932 ST.Rev..No. 33 of 2010() ------------------------ TA.36/2009 of AGRL.I.T. ADDL.BENCH,PALAKKAD .................... REVISION PETITIONER/RESPONDENT/REVENUE ---------------------------------------------------------- STATE OF KERALA REPRESENTED BY JOINT COMMISSIONER (LAW), COMMERCIAL TAXES, ERNAKULAM. BY G.P. SRI.MOHAMMED RAFIQ RESPONDENT/APPELLANT/ASSESSEE --------------------------------- M/S.SURYA LABORATORIES, IRINJALAKUDA. ADV. SMT.S.K.DEVI SRI.M.RAJ MOHAN THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 20/01/2011, ALONG WITH STRV NOS.41 & 42 OF 2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ. .................................................................... S.T. Rev. Nos.33, 41 and 42 of 2010 .................................................................... Dated this the 20th day of January, 2011. JUDGMENT Ramachandran Nair, J. The question raised in the connected revision cases is whether the soap manufactured and sold by the respondent under the name “Chandrika” is a handmade soap entitling them for concessional rate of tax at 4% as against the normal rate of 12% applicable for other soaps. Since the Tribunal decided the matter in favour of the respondent, State has filed the revisions contending that respondent's product is machine made and not handmade. 2. In view of the factual dispute, we directed an inspection and enquiry by a team of officials of the Sales Tax Department. They have filed a joint inspection report wherein the entire manufacturing process, the machines involved and the process adopted are discussed. While the contention of the State is that the machinery used, though not operated by electricity, make the product outside the category of handmade soaps, the contention of the assessee is that for every unit 2 making soap, even a Khadi Unit, has to necessarily use certain basic equipments like tank for storage, the drum for mixing and the trays and other things for cooling etc. The question whether the soap made by the respondent can be treated as handmade or otherwise will have to be decided with reference to the factual position i.e. the nature of manufacturing activity, the involvement of human agencies, machines if any etc. Since the Tribunal did not have materials now brought on record through the enquiry report and since the question is a mixed question of law and fact, we feel the matter should be first decided by the Tribunal. We, therefore, allow the revisions by setting aside the orders of the Tribunal and remand the case back to the Tribunal for reconsideration of the appeal on the question with specific reference to the findings in the enquiry report and if necessary, after calling for further particulars. The State will file photocopies of the enquiry report before the Tribunal and a copy will be given to the respondent. C.N.RAMACHANDRAN NAIR Judge BHABANI PRASAD RAY Judge pms