2006 (8) TMI 569

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..... er section 5A of the Kerala General Sales Tax Act, 1963 on purchase of green tea leaves by the petitioner used in the production of manufactured tea for export. We have heard counsel for the petitioner and the Government Pleader. It is seen from the Tribunal's order that petitioner being a SSI unit is enjoying sales tax exemption. It is also entitled to the benefit of Explanation to chargin .....

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..... unsel for the petitioner relied on the decision of this court in Cottanad Plantations Limited v. State of Kerala [1992] 85 STC 40, and contended that green tea leaves and manufactured tea are one and the same and so much so when purchased green tea leaves are exported, though after manufacture, the same qualifies for exemption under section 5(3) of the CST Act. We are unable to accept this content .....

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..... e. So long as green tea leaves are not exported, and what is exported is manufactured tea, petitioner is liable to pay tax under section 5A on the purchase turnover of green tea leaves consumed in the production of manufactured tea exported. The decision relied on by the petitioner does not lay down that green tea leaves and manufactured tea are one and the same. All what is stated is that green t .....

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