1997 (12) TMI 603

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..... The assessee is a small-scale industrial unit eligible for sales tax exemption in view of S.R.O. No. 968 of 1980. However, the assessing authority disallowed the exemption while completing the assessment for the year 1986-87. In appeal the Appellate Assistant Commissioner found that the assessee was entitled to exemption. However, the Appellate Assistant Commissioner remanded the case back to the assessing authority for verifying the certificate and for computing tax exemption. After the remand the assessing authority found that the assessee had not manufactured the entire product at its own place and therefore not entitled to exemption. Ultimately the matter came up before the Tribunal. The Tribunal found that the assessee was entitled to .....

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..... ted below: This case has been reversed by the Supreme Court: See State of Kerala v. Madras Rubber Factory Ltd. [1998] 108 STC 583.-Ed. "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 an exemption in respect of the tax payable under the said Act on the turnover of the sale of goods produced and sold by the new industrial units under the small-scale industries for a period of five years from the date of commencement of sale of such goods by the said units subject to the conditions that the tax if any collected by such units by way of tax on their sales shall be paid over to Governm .....

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..... Bench in the above case observed thus: "On the basis of the above finding, we have to hold that the assessee has complied with the conditions laid down in S.R.O. No. 968 of 1980 dated September 29, 1980. It is conceded before us that the assessee is a dealer under the Kerala General Sales Tax Act and is liable to pay sales tax. It follows that the assessee is entitled to legitimate exemption provided by the very same Act. The Sales Tax Appellate Tribunal, as the final fact-finding authority, has found that the assessee fulfilled both the conditions required to claim the exemption provided in the notification. We concur with the said view. No material was placed before us to assail the said finding and conclusion of the Appellate Tribunal. .....

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