1987 (7) TMI 549 - HC - VAT and Sales Tax

Summary

Issues:
1. Reopening of assessments under the Kerala General Sales Tax Act for the years 1975-76 to 1980-81.
2. Classification of ice-creams and ice-sticks for taxation under entry 25H(viii) of the First Schedule to the Act before its amendment by Act 19 of 1980.

Analysis:
1. The assessments for the years 1975-76 to 1977-78 were reopened under section 19 of the Act due to the petitioner's turnover related to ice-creams being initially assessed at a lower rate. The Court held that the reopening of assessments was authorized under section 19, which permits reopening "for any reason." The assessing authority correctly initiated proceedings to tax the goods under the appropriate entry after realizing the error in the initial assessment. The contention that the reopening was unauthorized was rejected by the Court.

2. The main contention revolved around whether ice-creams sold in cups and ice-sticks sold in paper bags fall under item 25H(viii) of the First Schedule to the Act before the 1980 amendment. The Court considered the definition of "packing" and concluded that the containers used for selling ice-creams and ice-sticks constituted packing under the Trade and Merchandise Marks Act, 1958. As these items were marketed under a registered brand name, they were classified under the relevant entry for taxation. The Appellate Tribunal's decision on this matter was upheld by the Court.

3. The Court found no merit in the tax revision case and dismissed it. The petitioner had paid court fees for each of the six years involved in the case. The Court ordered the dismissal of the case with costs, including counsel's fee.

In conclusion, the Court upheld the reopening of assessments under the Act and confirmed the classification of ice-creams and ice-sticks for taxation under the relevant entry. The tax revision case was dismissed with costs awarded to the respondent.