IN THE HIGH COURT OF KERALA AT ERNAKULAM
WA.No. 2169 of 2008()
1. MATHEW.K, PROPRIETOR, M/S.DECAN CABLES
... Petitioner
Vs
1. THE DIRECTOR OF INDUSTRIES AND COMMERCE,
... Respondent
2. THE GENERAL MANAGER, DISTRIC INDUSTRIES
For Petitioner :SRI.P.B.SAHASRANAMAN
For Respondent :GOVERNMENT PLEADER
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice K.SURENDRA MOHAN
Dated :11/02/2009
O R D E R
C .N. RAMACHANDRAN NAIR &
K. SURENDRA MOHAN, JJ.
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W.A. No. 2169 OF 2008
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Dated this the11th day of February, 2009
JUDGMENT
Ramachandran Nair,J.
Heard counsel for the appellant and Government Pleader for
the respondent. The question involved is whether appellant is
entitled to sales tax exemption on the value of the machinery
purchased and investment subsidy on the value of the same
machinery. The claim for exemption was rejected for the reason that
there is no satisfactory evidence to prove interstate transportation
and when the supplier was contacted, the letter was returned with
endorsement that no such company exists. However, appellant’s
specific case is that he got the goods in single truck and the total
value is around Rs.4 lakhs. The main machinery is the PVC extruder
which is used for manufacturing insulated copper cable in the
industry. The learned Single Judge rejected the writ petition for want
of proof to convince the purchase of new machinery by the appellant.
Even though we do not find anything wrong in the judgment, we feel
one more opportunity can be given to the appellant to substantiate
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the case before the General Manager, District Industries Centre,
Kollam(2nd respondent) for the following reasons.
2. In the first place, petitioners have produced Annexure A1
letter sent by the Manager in 1990. He has further contended that
petitioner can produce transport documents, since the goods
admittedly originated from Bangalore and since the goods are
transported through road it would not have come without being
supported by transport documents such as sales bill, central excise
gate pass etc. In fact, these documents would have been cleared by
border check posts before it reaches the consignee namely, the
appellant. Besides this, we are of the view that, supplier cannot be a
fly by-night company as it was engaged in manufacture of high value
machinery. Above all, the machinery would be covered by warranty
and there will be details about the installation certified by an electrical
inspector and all such allied documents to prove installation of the
new machinery. In fact, installation itself would be done by supplier’s
engineers within the warranty period and clear agreements pertaining
to warranty coverage also will be there. Besides this, there should
be bank documents pertaining to payment. If appellant produces
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convincing documents of the kind referred above within a period of
six weeks from the date of receipt of a copy of this judgment, there
will be a direction to the General Manager, District Industries Centre,
Kollam to reconsider the matter and if found genuine, grant eligible
relief through a speaking order with the prior approval of the Director
of Industries and Commerce.
Appeal is disposed of as above.
(C.N.RAMACHANDRAN NAIR)
Judge.
(K. SURENDRA MOHAN)
Judge.
ttb
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