PERIYAR & PAREEKANNI RUBBERS LTD. vs STATE OF KERALA

The Supreme Court addressed the liability for sales tax under the Kerala General Sales Tax Act, 1963, following a lease agreement between the appellant and Eagle Distillery (P) Ltd. The Court held that the assessing authority must determine the liability for tax for the assessment years 1986-87 and 1987-88, as the business was conducted by the lessee under the lease. The judgment quashed the recovery proceedings against the appellant, emphasizing that the lessee's responsibility for tax payments must be clarified during the final assessment.