ORDER

This is an appeal by the Revenue against the decision of a Division Bench of the Kerala High Court in tax revision cases filed at the instance of the Revenue. We are here concerned only with compounded rubber and with scrap. The assessment year concerned is Assessment Year 1986-87 and there is a provisional assessment for the period of April to December, 1990. The respondent manufactures compounded rubber in Kerala from rubber that is bought in Kerala. It claimed for the rubber that it bought the benefit of a notification (SRO No. 641/81) issued by the State in exercise of power conferred by Section 10 of the Kerala General Sales Tax Act, 1963. Thereby the rate of tax was reduced from five per cent to three per cent "on the purchase of rubber by manufacturers of finished rubber products within the State for use of such rubber by such manufacturers in the manufacture of finished rubber products". It was the case of the respondent that the compounded rubber that it manufactured was a finished rubber product and it produced before the assessing authority the affidavits of several individuals in the trade who affirmed that the compounded rubber was a finished rubber product as und