High Court Kerala High Court

Cochin Malabar Estates & … vs The State Of Kerala on 8 August, 2007

Kerala High Court
Cochin Malabar Estates & … vs The State Of Kerala on 8 August, 2007
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

TRC No. 120 of 2000()



1. COCHIN MALABAR ESTATES & INDUSTRIES LTD.
                      ...  Petitioner

                        Vs

1. THE STATE OF KERALA
                       ...       Respondent

                For Petitioner  :SRI.JOSE JOSEPH

                For Respondent  :GOVERNMENT PLEADER

The Hon'ble the Chief Justice MR.H.L.DATTU
The Hon'ble MR. Justice K.T.SANKARAN

 Dated :08/08/2007

 O R D E R
                      H.L. DATTU, C.J. & K.T. SANKARAN, J.
              ..................................................................................
              T.R.C. Nos. 116, 120, 121,122 AND 123 OF 2000
             ...................................................................................
                            Dated this the 8th August , 2007


                                              O R D E R

H.L. Dattu, C.J.:

These Tax Revisions Cases arise under the provisions of the Central

Sales Tax Act. In all these Revision Petitions, the assessee is common and

the revisional authority as well as the Tribunal have also disposed of the

matters by a common order. Therefore, all these Revision Petitions are

clubbed together, heard and disposed of by a common order.

2. The assessment proceedings are under the provisions of the

Central Sales Tax Actfor the assessment years 1988-89 to 1992-93.

3. The facts in brief are:- The petitioner is a plantation company . It is

registered both under the provisions of the Kerala General Sales Tax Act 1963

(hereinafter referred to as ‘Act 1963’ ) and the provisions of the Central Sales

Tax Act 1956 (hereinafter referred to as ‘Act 1956’). The Petitioner/Company

has effected inter-state sales of raw rubber produced/manufactured in their

industrial unit. The assessing authority – the Assistant Commissioner

(Assessment), Special Circle (Produce), Mattancherry has completed the

assessment proceedings under the provisions of the Act by taking into

account the aggregate of sale price received and receivable by the petitioner in

respect of interstate sales and has levied tax on the said transaction.

T.R.C. Nos. 116, 120, 121,122 AND 123 OF 2000

2

Subsequently, the orders of assessment so passed were re-opened by the

revisional authority by invoking his powers under section 35 of the Act, 1963 ,

on the ground that element of cess under Rubber Act, 1947 has not been

included in the sale price resulting in escapement of turnover in view of the

law declared by the Apex Court in State of Kerala vs. Madras Rubber

Factory Ltd.( [1998] 108 STC 583). The order so passed by the revisional

authority was the subject matter of the appeals before the Tribunal in

T.A.Nos.1122 to 1126 of 1999. The Tribunal has rejected the appeals, by its

order dated 20.11.1999. Aggrieved by the orders passed by the Tribunal, the

assessee is before us in these Tax Revision Cases, filed under section 41 of

the Act, 1963.

4. The assessee has raised the following question of law for our

consideration and decision; they are as under:

“i) Whether the Deputy Commissioner is competent to

revise any assessment order passed under the Central Salestax

Act invoking Section 35 of the K.G.S.T. Act in the absence of

any provision in the C.S.T.Act conferring revisional jurisdiction.?

ii) Whether on a proper and correct interpretation of Section

9(2) of the C.S.T. Act and Rules 6(7) and 6(8) of the CST

(Kerala)Rules, the Deputy Commissioner in exercise of the

powers under Section 35 of the K.G.S.T.Act has any authority or

power to direct the Assessing Authority to assess any escaped

turnover under the CST Act after the period of limitation