The Sales Tax Officer, and in appeal the Appellate Assistant Commissioner decided both the questions against the assessee and taxed the turn over of purchases of ornaments and other articles of gold at the rate of 3 per cent and the turn over of sales of G.I. Pipes at the rate of 7 per cent.
If they do number fall within this Entry, the turn over of their sales would be liable to be taxed at the rate of 3 per cent under section 5 1 ii of the Act, but if they do, then the rate of tax would be 7 per cent.
Appeal by Special Leave from the Judgment and Order dated 13 2 1978 of the Kerala High Court in TRC No.
The Tribunal, on further appeal by the assessee, disagreed with the view taken by the tax authorities and holding that the ornaments and other articles of gold purchased by the assessee were Bullion and specie within the meaning of Entry 56 and G.I. Pipes sold by the assessee were number companyered by the expression water supply and sanitary fittings in Entry 26A, taxed the assessee at the lesser rates as claimed by him.
The other question relates to taxation of the turnover of sales of G.I. Pipes effected by the assessee and it raises the point whether G.I. Pipes sold by the assessee fall within Entry 26A in the First Schedule to the Act which reads Water Supply and Sanitary Fittings.
If the ornaments and other articles of gold purchased by the assessee fall within this Entry, the turn over of purchases of these goods would be liable to be taxed at the rate of 1 per cent, while it would have to suffer tax at the rate of 3 per cent if these goods do number fall within the Entry and are taxable under section 5A read with sec.
5 1 ii of the Act.
One question is whether certain ornaments and other articles of gold purchased by the assessee with a view to melting them and making new ornaments or other articles out of the melted gold fall within Entry 56 in the First Schedule of the Kerala General Sales Tax Act, 1963 hereinafter referred to as the Act which reads Bullion and Specie.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Revenue thereupon took the matter by way of revision to the High Court, but the High Court also took the same view and affirmed the judgment of the Tribunal.
M. Abdul Khader, V.J. Francis and M.A. Firoz for the Appellant.
2422 of 1978.
The Judgment of the Court was delivered by BHAGWATI, J. The questions of law which arise for determination in this appeal lie in a very narrow companypass and do number present any difficulty in answering them.
They are the usual type of questions that arise under the Sales Tax legislation, namely, whether a particular companymodity sold or purchased by the assessee falls within one entry or another.
The assessee always companytends that it falls within an entry which attracts lesser rate of tax while the Revenue invariably seeks to bring it within the entry attracting a larger rate of tax.
