Om Parkash, C.J. 1. Despite service of notice, the assessee has chosen not to appear. We have, therefore, heard only the Government Pleader.
2. This T.R.C., filed by the Revenue, raises a short question whether agarbathis fall under entry 80B in the First Schedule to the Kerala General Sales Tax Act, 1963.
3. The case relates to the assessment year 1984-85. Entry 80B was introduced in the First Schedule with effect from April 1, 1984 as follows :
"80B. Raw bathis - at the point of first Rate sale in the State by a dealer who is liable to taz under section 5. 10 per cent."
After this entry, a controversy continued whether agarbathis are covered by the expression "raw bathis" as mentioned in entry 80B. To end this controversy the Legislature took steps to amend the First Schedule* bringing in necessary amendments in entry 155 by the Ordinance published in the Gazette on September 28, 1989. In the Ordinance, Clause 6(d) was incorporated to amend entry 155 adding the words "agarbathis and other scented sticks" after the words "raw bathis". Under Clause 1(2) of the Ordinance, Sub-clause (d) of Clause 6 was given retrospective operation with effect from April 1, 1984. Subsequently the Ordinance was replaced by the Amending Act. The retrospectivity was challenged by another assessee in State of Kerala v. Lissey James 1997 KLJ (Tax Cases) 213 and the contentions of the assessee were repelled. Retrospectivity was upheld as reasonable and constitutional.
4. In view of the Amending Act, it is manifest that the expression "raw bathis" occurring in entry 80B will cover agarbathis liable to tax at the rate of 10 per cent.
5. For the above reasons we agree with the submission made by the learned Government Pleader that the Appellate Tribunal was in error in holding that agarbathis are liable to tax as an unclassified item.
In the result, the T.R.C. succeeds and is allowed.