- (1.) The judgment and order under appeal was delivered by the High Court at Kerala. It held that imported sugar was not exigible to tax under the provisions of the Kerala General Sales Tax Act, 1963.
(2.) The assessment year with which we are concerned is Assessment Year 1984-85. The assessee was assessed to sales tax under the said Act on its turnover of imported sugar. It challenged the assessment by a writ petition in the Kerala High Court, upon which the order under appeal was passed.
(3.) Schedule III of the said Act enumerates goods that are exempt. from the levy of tax thereunder. Entry 5 therein reads thus: "5.Sugar as defined in Item No. 1 of the First Schedule to the Central excises and Salt Act, 1944. "sugar is defined in the First Schedule to the Central Excises and Salt Act, 1944 under Entry 1 thus: "1.Sugar produced in a factory ordinarily using power in the course of production of sugar 'sugar' means any form of sugar in which the sucrose content, if expressed as a percentage of the material dried to constant weight at 105 degrees centigrade, would be more than ninety. ";