Kerala General Sales Tax Act, 1963

ACC Ltd entered into an agreement with Cochin Cement Ltd (CCL) whereby CCL would manufacture cement using raw material supplied by ACC and the cement would be marketed under ACC's brand. ACC claimed that, under Section 5(2) of the Kerala General Sales Tax Act, 1963, the sale made by CCL was the first sale and ACC's sub…

IFB Industries Ltd., a manufacturer of home appliances, offered trade discounts to its dealers, some of which were granted through credit notes after sales targets were met. The dispute centered on whether such discounts, not shown on the original sales invoice, could be deducted from taxable turnover under Rule 9(a) o…

KAIL Ltd., a dealer of home appliances in Kerala, purchased goods from its holding company Videocon International Ltd. and marketed them under the brand name "Sansui". The company claimed a second‑sale exemption under the Kerala General Sales Tax Act, 1963, arguing that it was not the holder of the Sansui trademark. Th…

The Cochin Port Trust, a statutory authority under the Major Port Trusts Act, 1963, was assessed sales tax for its dealings in scrap items such as water, firewood and waste paper. The Trust contended that it was not a "dealer" within the meaning of Section 2(viii) of the Kerala General Sales Tax Act, 1963, arguing that…

The Supreme Court examined whether an Official Liquidator, appointed to wind up Premier Cable Company Ltd., qualifies as a "dealer" under the Kerala General Sales Tax Act, 1963 and consequently bears sales tax liability on the auction sale of the company's assets. The Court held that the liquidator, by stepping into th…

The appellants, exporters of tea, bought tea at open auction from planters and exported it, claiming exemption from sales tax under section 5(3) of the Central Sales Tax Act, 1956. The assessing authority accepted the exemption claim as genuine but denied a refund of tax paid to the seller, holding that only the dealer…

Malayala Manorama Co. Ltd. purchased printing ink for newspaper production in 2001‑02 and claimed a concessional 3% tax rate by filing Form 18 under Section 5(3) of the Kerala General Sales Tax Act, 1963. The Assistant Commissioner issued a penalty notice alleging that newspaper printing does not constitute "manufactur…

The appellants purchased goods from dealers who were exempt from sales tax under the Kerala General Sales Tax Act, 1963 and the Tamil Nadu General Sales Tax Act, 1959, and challenged the levy of purchase tax under s.5A of the Kerala Act and s.7A of the Tamil Nadu Act. The questions were whether such purchases constitut…

Augustan Textile Colours Ltd., a revived sick industrial unit, was granted sales‑tax/works‑contract‑tax exemption under a Government Order dated 20 March 2004 as part of a BIFR rehabilitation scheme. In 2006 the Kerala Government withdrew the exemption under Section 10(3) of the Kerala General Sales Tax Act, 1963. The …

Aluva Sugar Agency sold bakery margarine and argued that it should attract the concessional 4% tax rate under Entry 17A of the Kerala General Sales Tax Act, 1963, on the ground that margarine is an edible oil. The Sales Tax Officer and the Kerala High Court held that margarine fell under Entry 90 of the First Schedule …

Idea Mobile Communication Ltd sold SIM cards to its subscribers and charged both sales tax and service tax on activation. The dispute centered on whether the value of the SIM cards should be taxed as a service under Section 65(105) of the Finance Act, 1994, or as a sale of goods under the Kerala General Sales Tax Act, …

Heinz India Ltd. challenged the classification of its product, Nycil Prickly Heat Powder, under state sales tax statutes. The Kerala High Court and the Madras High Court had held the product to be a "medicated talcum powder" and thus a cosmetic, subject to a lower tax rate, rejecting the revenue's view that it was a me…

The Kerala State Beverages Manufacturing & Marketing Corporation Ltd (KSBC), a state‑owned liquor undertaking, challenged the disallowance of various levies under Section 40(a)(iib) of the Income‑Tax Act, 1961. The issues were whether the gallonage fee, licence fee and shop‑rental (kist) for FL‑9 and FL‑1 licences are …

Cardamom Marketing Corporation and another, registered dealers under the Kerala General Sales Tax Act and Kerala Value Added Tax Act, challenged a 2002 government notification that levied an additional court fee on appeals and revisions before tribunals, directing the proceeds to the Kerala Legal Benefit Fund. They arg…