P. SHANMUGAM, J. –

Petitioner is engaged in the manufacture of tyres, tubes and flaps for motor vehicles and is having the factory for the manufacture of these items in Tamil Nadu State. Petitioner purchases raw rubber from Kerala State and transfer it to their factory at Madurai for manufacturing tyres, tubes, etc.

2. The original assessment of the petitioner for the year 1993-94 was completed on July 31, 1997 in which the rubber cess paid amounting to Rs. 11,52,000 on the purchase turnover of rubber was not taken into account for arriving the total taxable turnover. In the light of the Supreme Court decision in State of Kerala v. Madras Rubber Factory Ltd. [1998] 108 STC 583; 6 KTR 118 holding that rubber cess paid is taxable and includible in the purchase turnover of rubber, exhibit P1 assessment order was reopened and exhibit P2 assessment was completed for the year 1993-94 including the cess in the turnover.

3. The original petition is filed to quash exhibit P2 assessment order. Petitioner has also challenged exhibit P3 notification which has granted exemption to dealers in respect of goods purchased for the period up to and including 18th December, 1997.

4. In the lig