LexTHE ASSISTANT COMMISSIONER OF SALES TAX, KERALA versus M/S P. KESAVAN AND CO .
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A THE ASSISTANT COMMISSIONER OF SALES TAX, ~RALA v. MIS P. KESAVAN AND CO . . NOVEMBER 14, 1995 B [S.P. BHARUCHA, FAIZAN UDDIN AND S.B. MAJMUDAR, JJ.J Kerala General Sales Tax Act, 1963 : S.9, Schedule III, Entry 7-Caristrap Rayon Cord Strapping-Sales tax C payable on-Assessee claiming exemption-Assessing Authority refusing claim-Writ petition by assessee agitating issue of manufacturing process-Held, authorities under the Act are more competent to deal with the issue involving intricate technical processes of manufacture and Court should direct writ petitioners to agitate their wievances before statutory authorities. D The respondents, sellers of Caristrap Rayon Cord Strapping, claimed exemption from taxation under the Kerala General Sales Tax Act, 1963, on the ground that Entry 7 of Schedule III to the Act applied to the article. The Assessing Authority refused the claim. The respondents filed writ petitions before the High Court contending that refusal by the assess- E ing authority of exemption under Entry 7 of Schedule III to the Act was arbitrary inasmuch as the Caristrap Rayon Cord Strapping was a fabric made purely from rayon yarns and the percentage of the bonding agent used for fabricating the said strapping was negligible. The Revenue con- tended that the writ petitions were not maintainable as the petitioners had not chosen to agitate the issue before the appropriate sales tax authorities F . in appeal and revision; and that the issue involved in the case was of a technical nature and appropriate authorities to go into and appreciate such technical matters were the authorities provided for in the Act. The writ petitions were dismissed. The respondents filed appeals before the Division Bench of the High Court, which allowed the claim of the .respon- G dents. Aggrieved, the Revenue filed the appeals. Allowing the appeals, this Court HELD : 1. Where technical matters or intricate technical processes are involved, and particularly when processes of manufacture have become H increasi~gly complicated, it is appropriate that the writ court should direct 234 .. ASSTI.COMMNR.OFSALESTAXv. P.KESAVAN &CO. 235 writ petitioners to agitate their grievances before statutory authorities who A are more competent to deal with such matters and to assess the merits thereof. [237-E; G] 1.2. In the instant case, the decision of the Division Bench of the High Court was given upon inadequate material. The High Court should not have entertained the writ petitions and should have directed the respon- B dents to agitate their grievances before the authorities under the Kerala General Sales Tax Act, 1963. These authorities would have been in a better position to seek and appreciate the necessary evidence and determine whether or not the strapping sold by the respondents fell within the scope of Entry-7 of Schedule-III to the Act. [237-C-D] C 2. The respondents shall be at liberty to adopt appropriate proceed- ings under the Kerala General Sales Tax Act, 1963, to claim exemption for the said strapping for the relevant years. [238-A-B] CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1899-1.900 D (NT) of 1976. From the Judgment and Order dated 10.11.75 of the Kerala High Court in W.A. Nos. 84-85 of 1974. A.S. Nambiar and M.A. Firoz for the Appellant. S. Muralidhar for the Respondent. The following Order of the Court was delivered : E The appeals, by certificate, arise upon the common judgment of a F Division Bench of the Kerala High Court whereby writ petitions filed by the respondents were allowed. The respondents were sellers of Caristrap Rayon Cord Strapping. According to them, the said strapping was exempted from taxation under G the Kerala General Sales Tax Act, 1963. They relied in this behalf upon Entry-7 of Schedule-III to the said Act. Schedule-III sets out the goods which are exempted from sales tax under section 9 of the said Act. Entry-7 thereof reads thus : "Cotton fabrics, woolen fabrics and rayon or artificial silk fabrics H A B c D E F 236 SUPREME COURT REPORTS [1995) SUPP. 5 S.C.R. as defined in Items Nos. 19, 21 and 22 respectively of the First Scheduled to the Central Excise and Salt Act, 1944." Item No. 22 of the First Schedule to the Central Excise and Salt Act, 1944, so far as it is relevant, read as follows : Rayon or Artificial Silk Fabrics - "Rayon or artificial silk fabrics include all varieties of fabrics manufactured either wh
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