ORDER :

K.Vinod Chandran, J.

In the above revisions filed by the State we are concerned with three assessment years- 2007-08, 2009-10 and 2011-12. The issue agitated before the statutory authorities was as to whether the product of the respondent assessee called “Halls” is exigible to tax @ 4% under Schedule III or 12.5% under SRO 82/2006. The respondent- assessee before the Assessing Officer claimed that the product is an Ayurvedic medicament covered by HSN Code, which finds place as against the specific Entry under Schedule III making it exigible to reduced rate of tax @4%. The Assessing Authority however, found that by virtue of the amendments made in the year 2007, the product even if it is a medication stood excluded from Schedule III and included specifically in SRO 82/2006; exigible to tax @12.5%.

2. The Assessing Officer allegedly even against a clarification issued by the Commissioner under Section 94 of the Kerala Value Added Tax Act, 2003 (for brevity “KVAT Act”), assessed the product at the higher rate. The First Appellate Authority reversed the order on the ground of