"C.R"

Petitioner is challenging Ext.P3 issued by the Assessing Officer revising the petitioners sales tax assessment for the year 2002-03 under Section 19 of the K.G.S.T Act, 1963, bringing to tax the turnover of polythene sheets at the higher rate of 12%, as against the original assessment of the item at 4% treating it as packing material under entry 102 of the first Schedule to the K.G.S.T Act, 1963. Petitioner was engaged in the manufacture and sale of polythene film to those engaged in production, packing and sale of milk, oil etc. The main supply of the product was to the milk supplying organization "MILMA" after printing their logo and name in the polythene sheets. The polythene sheets are converted into polythene bags in the course of packing milk wherein, the automatic packing machine converts the sheets to cover form and packs the same with specified quantity of the milk therein. The petitioner relying on Ext.P1 clarification of the Commissioner of Commercial Taxes on 05/04/2001 collected and remitted tax at the rate of 4% treating polythene film as packing material "falling under entry 102 of the First Schedule to the K.G.S.T Act". This was accepted by the Asse