2011 (4) TMI 1390 - SC - VAT and Sales Tax

Summary

Issues involved: Determination of entitlement to concessional rate of sales tax on purchase of rubber used in production of compound rubber; validity of notifications issued by respondent State.

Summary:
The Supreme Court considered an appeal against the Kerala High Court's judgment setting aside the Sales Tax Tribunal's decision regarding the appellant's entitlement to a concessional rate of sales tax on rubber used in producing compound rubber. The High Court held the appellant was not eligible for the benefit. The Supreme Court found a crucial technical issue regarding the distinction between "rubber compound" and "compound of rubber" needed further evidence. It noted lack of evidence from the respondent supporting their claim that the appellant's product was "compound of rubber." The Court set aside the High Court's judgment and restored the case for further examination.

Additionally, the appellant had filed writ petitions challenging the validity of notifications issued by the respondent, which were also dismissed by the High Court. As the Supreme Court set aside the earlier judgment, the writ petitions were restored for reconsideration. The parties were allowed to present additional evidence, documents, and affidavits before the High Court. They were also permitted to raise new legal issues and request an early hearing, with the High Court directed to expedite the process within six months.

Furthermore, a significant amount deposited by the appellant in compliance with a previous court order was to remain with the Department until the final decision by the High Court. The parties were granted liberty to seek appropriate orders from the Supreme Court if necessary, after a specified date. The civil appeals were disposed of in accordance with the Court's directives and observations.