H. L. Dattu, C.J. –

The assessee is common in all these petitions, and therefore, these petitions are clubbed, heard and disposed of by this common judgment.

The assessee has called in question the correctness or otherwise of the common order passed by the Sales Tax Appellate Tribunal in T.A. Nos. 404 of 2003 and 405 of 2003 and Cross Objection Nos. 34 of 2003 and 35 of 2003 dated May 12, 2004.

The assessee is a dealer registered both under the provisions of the Kerala General Sales Tax Act, 1963 ("the Act", for short) and the Central Sales Tax Act, 1956.

The assessee is a small-scale industrial unit (for the sake of brevity, referred to as "SSI unit") and is engaged in the manufacture of block board, flush board and plywoods.

The State Government, in exercise of the power conferred by section 10 of the Kerala General Sales Tax Act, and in supersession of notifications mentioned in the Schedule, having considered it necessary in public interest, has issued Notification S.R.O. No. 1729 of 1993, granting tax exemptions to industrial units and/or reduction in the rate of tax payable on the sale or purchase, as the case may be, of goods by such industrial units, subject to conditions and restrictions specified in the notification. By S.R.O. No. 404 of 1994, clause (x) is inserted in the notification with effect from April 1, 1994.

Clause (x) of the Explanation envisages certain industries which are not eligible for concession under the notification. Clause (x) is as under :

"Industrial units manufacturing the following items shall not be eligible for the concessions under this notification :-

(a) Biscuits;

(b) Cement paints;

(c) Packing cases, tea chests, plywoods, splints, veneers, wooden crates and wooden cable drums;

(d) Bricks and tiles.

Provided that existing units manufacturing biscuits which undertook expansion, modernisation, or diversification on or after January 1, 1994 but prior to January 1, 2000 shall be eligible for the concession under the notification."

In order to claim exemption from payment of tax pursuant to the aforesaid notification, the assessee had filed an application dated January 15, 1996 before the District Level Committee constituted for the purpose of deciding whether an industry is eligible for exemption under the notification. The District Level Committee by its order No. C2 669/96/00 dated April 18, 1996 has found the assessee is eligible for exemption from payment of tax both under the KGST and CST Acts on the manufacture and sale of block board, flush board and plywoods for the period from July 5, 1995 to July 4, 2002, i.e., for a period of seven years from the date of commercial production. The issues raised in these revision petitions revolve round the order passed by the District Level Committee and, therefore, the same is extracted and it reads as under :

"M/s. Nina Boards, Development Plot, Andoor, have applied for Kerala general sales tax/Central sales tax/purchase tax exemption for new unit (strike out whichever is not applicable).

2. As per the minutes of the meeting cited above it was determined that the unit is eligible for exemption from Kerala general sales tax/Central sales tax/purchase tax/additional sales tax/surcharge and turnover tax (strike out whichever is not applicable) as per the provisions of Government Orders cited above for the following items manufactured and sold by them for the period from July 5, 1995 to July 4, 2002.

3. Items manufactured and annual capacity

------------------------------------------------------------------------- S. No. Name of items Quantity Value ------------------------------------------------------------------------- Block board and flush door, 84842.8 sq. m. 30,000 plywood -------------------------------------------------------------------------

4. Therefore, as per the provisions of the above Government Order, M/s. Nina Boards, Development Plot, Andoor, eligible for