MALAYALA MANORAMA CO. LTD. vs ASSISTANT COMMISSIONER, COMM.TAXES &ANR.

The Supreme Court addressed the applicability of Section 5(3) of the Kerala General Sales Tax Act, 1963, concerning the purchase of printing ink by M/s. Malayala Manorama Co. Ltd. The Court held that the amendment to Section 5(3) by the Finance Act, 2000, which removed the requirement of manufacturing for tax concession, was valid, and thus the imposition of penalty under Section 45(A) was improper. The Court emphasized that 'production' differs from 'manufacturing' and that newspapers qualify as goods under the Act, reversing the Assistant Commissioner's decision.