IN THE HIGH COURT OF KERALA AT ERNAKULAM
ST.Rev..No. 21 of 2007()
1. STATE OF KERALA,
... Petitioner
Vs
1. UNIVERSAL GLOVES (P) LTD.,
... Respondent
For Petitioner :GOVERNMENT PLEADER
For Respondent :SRI.V.M.KURIAN
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice K.SURENDRA MOHAN
Dated :30/08/2010
O R D E R
C.R.
C .N. RAMACHANDRAN NAIR, &
K. SURENDRA MOHAN, JJ.
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S. T. Rev. No. 21 of 2007
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Dated this the 30th day of August, 2010
JUDGMENT
Ramachandran Nair, J.
Heard Government Pleader and counsel appearing for the
respondent-assessee. The question raised is whether the tribunal was
justified in granting exemption to the assessee on the purchase turnover
of rubber latex used in the manufacture of gloves for export.
Respondent-assessee is an industrial unit in the Cochin Export
Processing Zone and the purchase of latex is also made from another
unit in the Cochin Export Processing Zone. Notification, SRO 1727 of
1993 entitles exemption for export-oriented units for purchase of
industrial raw materials for use in manufacture. The notification
provides for exemption to the seller on producing declaration obtained
from the purchasing unitto the effect that purchase is for use in the
manufacture of goods for export. However, in this case, seller of
rubber latex is not liable for tax because the item is taxable at the last
purchase point, and purchaser being manufacturer happens to be liable
STRV 21/2007 2
to pay tax at the point of last purchase if exemption is not available.
Department has no case that the item purchased is not used in the
manufacture of rubber gloves for export. So much so, the condition in
the notification is satisfied and the disallowance of exemption is only
on technical ground that declaration contemplated under the
notification has no application. We do not think on this technical
ground exemption can be disallowed. In our view, declaration applies
only to commidities which are taxable at sale point and the same does
not apply to commodities taxable at last purchase where tax liability
falls on the industrial unit itself if exemption is not available. In this
case, respondent is eligible for exemption if they prove the ingredients
of the notification with evidence that the item purchased, i.e., rubber
latex, is used in the manufacture of gloves for export. Since the
department has no case to the contrary, we uphold the order of the
Tribunal and dismiss the revision filed by the State.
(C.N.RAMACHANDRAN NAIR)
Judge.
(K. SURENDRA MOHAN)
Judge.
kk STRV 21/2007 3