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TMI Blog1992 (3) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... s a liability claimed by the assessee on account of the purchase tax payable on the shrimps purchased, under the provisions of the Kerala Sales-tax Act. The ITO allowed the said claim of the assessee and completed the assessments relating to the asst. yrs. 1981-82 and 1982-83. Subsequently, the CIT, Cochin, after scrutinising the assessment records, came to the conclusion that the assessee in fact had no liability to pay purchase tax on the shrimps purchased by him in view of the decision of the High Court of Kerala in the case of Neroth Oil Mills 49 STC 249 (Ker), that the assessment orders passed by the ITO by allowing the aforementioned liability to purchase tax are erroneous and prejudicial to the interests of the Revenue and that in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted. The CIT(A) held that the issue involved in the three appeals stood settled by the judgment dt. 21st July, 1986 of the Supreme Court rendered in the case of M/s Sterling Foods vs. State of Karnataka 63 STC 237, that the Supreme Court held in that case that purchase of shrimps, prawns, etc. must be held to be purchases made in the course of export and, therefore, exempt from liability to pay purchase tax, that though the said judgment was rendered under the Karnataka Sales-tax Act, it equally applies to the Kerala Sales-tax Act also since the provisions of both the enactments are almost similar and that inasmuch as there was no liability on the part of the assessee to pay purchase tax, the assessee is not entitled to claim any deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce on the order of the Cochin Bench of this Tribunal in ITA Nos. 557 and 558/Coch/85 dt. 30th May, 1991. The assessee filed the photostat copy of the notice dt. 19th March, 1990 whereunder the Additional Sales-tax Officer, Second Circle, Mattancherry, directed the assessee to produce its account books for the years 1977-78 to 1988-89 on 30th Sept., 1990 for the purpose of making sales-tax assessments, to show that the assessments relating to the three assessment years now under consideration are still pending finalisation with the sales-tax authorities. The assessee also filed a photostat copy of the order of the Cochin Bench of this Tribunal in ITA Nos. 557 and 558/Coch/85, dt. 30th May, 1991, in support of its contention that the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held to be purchases in the course of export and, hence, exempt from liability to tax under the Karnataka Sales-tax Act. It is contended on behalf of the appellant-assessee that the aforementioned decision is one rendered under the provisions of the Karnataka Sales-tax Act and that the judgment of the Kerala High Court in the case of Neroth Oil Mills is still the subject-matter of an appeal filed by the State of Kerala in the Supreme Court and that till the disposal of the said appeal, the liability of the appellant for purchase tax may be allowed to be continued. The assessee was also served with a notice dt. 19th March, 1990 by the sales-tax authorities directing him to appear before them with account books, etc. for the finalisation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility of purchase tax provided in the accounts and revise the assessments. Against that order made under s. 263 by the CIT, the assessee preferred appeals before the Cochin Bench of this Tribunal. Originally, the Tribunal by its order dt. 12th June, 1987 allowed the said appeals and quashed the orders of the CIT relying upon its earlier decision in the case of M/s Rejini Ice and Cold Storage, Cochin vs. ITO (ITA 484/Coch/85, dt. 29th May, 1987). At the instance of the Revenue, the question relating to the liability of purchase tax provision as a deduction was referred to the High Court of Kerala for its opinion. The High Court in its order dt. 5th March, 1991 made in IT Ref. Nos. 168 169/88 declined to answer the said question and direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption in respect of the export of prawns. Taking judicial notice of these developments, in our opinion, it can be held that the assessee would have reasonable apprehension of its liability to pay sales-tax on the turnover claimed by the assessee to be exempted. In view of the matter, we hold that the assessee is entitled to get the deduction in respect of the provisions of the sales-tax for the assessment years under consideration." Further, in that case while referring to the contention of the Departmental Representative based on the case of Sterling Foods, the Tribunal observed as follows: "According to us, the facts of the case referred to above are not similar to the facts of the case on hand. In this case, the assessee was ser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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