THE ASSISTANT COMMISSIONER OFSALES TAX, KERALA. vs M/S P.KESAVAN & CO.

The Supreme Court addressed the issue of whether Caristrap Rayon Cord Strapping qualifies for tax exemption under Entry-7 of Schedule-III of the Kerala General Sales Tax Act, 1963. The Court held that the strapping, made predominantly from rayon yarns, does meet the criteria for exemption as it constitutes a fabric under the definitions provided in the Central Excise and Salt Act, 1944. The Court affirmed the Division Bench's ruling that the strapping is indeed a rayon fabric, thereby allowing the appeals against the single judge's decision.