9911796707
TMI Blog1993 (7) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... int of last purchase in the State at the rate of 5 per cent. The revision petitioner-assessee contends that it is entitled to the benefit of the Government Notification S.R.O. No. 641 of 1981 dated June 2, 1981, by which the rate of tax was reduced from 5 per cent to 3 per cent on the purchase of rubber by the manufacturers of finished rubber products within the State for the use of such rubber by such manufacturers in the manufacture of finished rubber products within the State. The Appellate Tribunal negatived the plea. That has resulted in the present revision. 2.. We heard counsel for the assessee, Mr. C.N. Ramachandran Nair of M/s. Menon & Pai, and also counsel for the respondent-Revenue, Senior Government Pleader Mr. V.C. James. 3.. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -scale rubber industrial unit means, any small-scale industrial unit registered as such either provisionally or permanently with the Department of Industries and Commerce and utilising rubber in any form as one of the raw materials for the industrial unit." "S.R.O. No. 641181.-In exercise of the powers conferred by section 10 of the Kerala General Sales Tax Act, 1963 (15 of 1963), the Government of Kerala, having considered it necessary in the public interest so to do, hereby make a reduction in the rate of tax payable under the said Act on the purchase of rubber by manufacturers of finished rubber products within the State for use of such rubber by such manufacturers in the manufacture of finished rubber products within the State from fiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has reduced the rate of tax payable on the purchase of rubber by manufacturers of finished rubber products within the State for use of such rubber by such manufacturers in the manufacture of finished rubber products within the State to three per cent. Government therefore consider that an explanation for 'finished rubber product' is necessary to remove the ambiguity. The notification is intended to achieve the above object." We will examine whether the assessee is entitled to the concessional rate of tax for the raw rubber purchased by it, which was used for the manufacture of tread rubber with reference to S.R.O. No. 585 of 1980. It is stated in the assessment order that the assessee is manufacturing tread rubber at industrial estate, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rubber is a synthetic rubber product, the assessee will be entitled to the concessional rate, in view of the language in S.R.O. No. 585 of 1980. It cannot be denied that the end-product is rubber product and the raw rubber purchased was utilised as one of the raw materials for the industrial unit. In this view, we hold that the Appellate Tribunal committed an error of law in upholding the levy of tax at the rate of 5 per cent on the purchase turnover of raw rubber used for the manufacture of tread rubber. 5.. Even on the basis that S.R.O. No. 641 of 1981 applies to the instant case, it is evident that the assessees, a manufacturer, who purchased rubber and manufactured finished rubber products within the State, is entitled to the concessio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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