Judgment

Kirpal, J.-Special leave granted in SLP (Civil) Nos. 9649-50 of 1997.

2. The only question which arises for consideration in this batch of cases is whether the cess payable under the provisions of the Rubber Act, 1947 will form part of the purchase turnover of the respondents under the Kerala General Sales Tax, 1963.

3. M/s. M.R.F. Ltd., Ceat Tyres of India Ltd., Bata India Ltd., Good Year India Ltd. etc., hereinafter referred to as the dealers, are the respondents in these cases. They purchased rubber in Kerala. This rubber was purchased either from the producer or from the dealers. The rubber so purchased was either used in the manufacture within the State of Kerala or was sent out of the State for use elsewhere.

4. Under the provisions of Section 5 of the Kerala General Sales Tax Act, 1963 (hereinafter referred to as ‘the Sales Tax Act’) the tax on rubber is a single point tax. According to the said section read with the schedule thereto the tax is leviable on the last producer of rubber within the State. The liability to pay tax on the purchases so made under the Sales Tax Act is not in dispute but what has been contended by the dealers is that in computing the turnover on