M/S Afcons Infrastructure Ltd vs Government Of Karnataka on 17 March, 2008

Karnataka High Court

Author: N.K.Patil

II
{M
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IN THE HIGH COURT 6? KRRNATAKA RT BANGAh0RE.

nncrxn: mxs ms 17" rm' or: MARCH 2008
: ssvons :

max EGN'BLE un.ausr1cs N.K. eawxm

cm I    _
9:211' PETITIIDN m.13=o4a an 2€:4o':g(m~z':t'I:5:_'

{IN V? IGSOQIZUGVF
BE?WEEN:

Mrs. AFCO!-23 1:aFnAs'ra.uc?:'i;Ii=.;A 'L1_:&:A':'s"Ii',iv%I'_  
A conrnm zmcaxromwnn un'ns,;¢.%:-H3  

CGMPANIES ACT, '3._s'.~.«'.:':§,    I «.
HBYIHQ ITS REG13?5RED:QFEI$E ET a°«wm
amass H€i8SE_.. 16, 5;  é 1_r-m;.Is':3_3~21j3aL ESTATE
VEERA DESAI   %r»::3sAaV%£>o;~J% 

PEST mu: I-zc:.3;:L9'*3'*31'.,.__'1xpz1:$mR: ﬁn, 

MLIMBAI  "   

ALS9 *£atmri*z9s' ﬁe  AT
POST BU Hﬂglﬁ, 3UEUK VELERSE,
pus? 1I'ISh'1ﬂ.!4I'I'3_I'tIRA,._  V. 

nmmmw.m.1, masanonz -562 11:3,

4_ . my azziasamzwan Ff.  PROJEEZT mmssa,

warr pmxrxen r:o.1c>3o9 our 2Vc::j*:%.%m~:sfri§§_t%f;=2=;2c%$'  

T@x$b'{ﬂ 

... PETITIGWER.

 t3; §g3';nuA ASSOCIATES, AmrocM'Es.:

A  :;o?u'1§:am:3NT cm' !UI.RNA'I'A!CA

I§FRﬁ3TRﬂCTURE EEVELOEEENT DEEARTMEHT,
KAFHATAICE GGVERDIMENT SECRETARIFLT,

 '"Gmu:~m moan, Room 30.24,

VIKESA SOUBHA, BANGALORE,
REPRESEHTED BY THE SHEER SECRETARY T0

GGVERMHENT INFRESTRHCTURE
DEYELQFEENT DE?A£TMKNT.



2 2 2
2.THE PRIRCIPAL SECRETAKY,
IHFRHSTRUCTGRE DEVELOPMENT DEPRRTHENT,
KERRHTEKE GOVERHHENT SECRETRRIAT,
EQGM NB.24, GRQUNQ FLOQR,

WEST GR?E, Viﬁﬁﬂﬂh SOUBHR,
BAHGALQRE.

3.THE PRIHCIEKL SECRETARY,
FINANCE BEPRR?MENT,
KRRHATAKE EOVEENMENT 8ECRE?hRIBT,
VIBHRHA SOUDHW, BANGALORE.

44.NAT10RAL HIGHWAY AQTHORITY SF §ﬁDIA,5W"",f. 
A GU?ERNMEﬁT OF INDIA UNBERTAKIH£;«ﬂ  « '
NO.1, EESTERN AVENUE, HAHRRENX BERG;
NEW BELHI-110 055. '«  

gay smT.s.suJAmHA,.AsA f¢£ 3.1 ta ﬁ;3, g
Hf3.3INGH3HIB & PERTHERS, h§VUCRTE3, &l0ﬂ§.Rith
SMT.SHILPA Sana, 3Hvcar3,_$§£_R.4.}

This Brit C?atitisﬁ= is. filed under Article
226 af 'tha_ Canstitutian4_a£ India, praying to
declara that% the faatitioner is entitled to
examgtion £rpmvVgaymgntu at State Entry ?ax on
machinas,1 aquipmant, cayital goods and

,~¢¢n3§rQctian maturial procured fer implementation
WVafAtha prcﬁégt wank until tha aamplatian at the
"53z*::j'e»€;t ..m:..ci-:.;"'vt__'.o quash the modiried certificata

u¢a:;ng--_f5p;13§;17a.In.2903 dated 28.03.2997,
viﬂa ;annaxu:arJ, on the file at tha first

V'v  re39u§§ent,Lgtc.

 "=, i1n w? 1§¢nax2oc7>

-----------w

'":_E$Tﬁﬁﬁﬂ:
,1. gig; arcoms INFRASTRHCTURE LIMITEB,

K CQRANY INCGEPORATEB UNDER THE

"""cunPAN1Es BET, 1956,

Hﬁﬂlﬁﬁ ITS REGISTERED GFFIC3 AW

EFCUNS HOUSE, 16, SEER IHDUSTRIEL ESTATE
AIRS MAGAR FDST, P.E. H0.119?8,

Aﬂﬁﬂﬂﬁl (WEST), Muﬁﬁﬂl - £33 053.

}.,'nzs§éﬁ3$grs;V



: 3 3

2. Mfﬁ. AFCGNS PAULING (INBIAJ LINITEB,
ﬂ CGRAHY INCORPORATED UNDER THE
CGMFANIES h£T, 1956, ﬂMVING ITS
REGISTERED DFFICE AT AFCGNS HOUSE,
16, SHHH IHDUSTRIAD E3?h?E,

A333 NASAR POST, P.E. NO.11978,
AEUHERI (WEST). MUMBAI 499 053.

. . .  T '"

(By ms.nua ASSGCIATES, :;bgI5irt>cza:'i:s.%;'  %

M311}:

1. GGVERMMEN? as xannnmaxa '_"uz '*V V"»v'V"*
INFRASTRUCTURE mm L(}PMENTV'13EPARTME:-IT   
xnnmnrnxa savnnnxmw sscﬁ3T3ﬁJA3, '~
GROUND Faook, Roan.ﬁc,24,° ' ' '=
VIKRSA SOUHHA, BANGH&¢RE;_ ,v 'ﬁfn'g
nnrnssnwwnn av wan UNDER sacnztsnxywa;
GﬁVERNMENT INFRA3TRUﬂ?ﬂR£'-Ag 'V *.=
nxvnnarnsaw.nzgnamn3Nw,f; " "

2.?HE PRIH€IRHL®$EC%£THKY; ~

Iwrmnswgucwunzyngvsnugnzgw_nxynamnnmr,
KERHATAKB $ovEnHHE§T.s£QR3TAn1Ar,

Roan na.24,*caaun2g?uGaR;~'

was? GATE; viaﬁaﬁa sounﬁa,

naaunnanx. '~ V 5 2 *

,;;=;.'  '-§§IDiA€:IPﬁL sﬁcaarrmv,

»VF1MAscx_ugaAR$nEMT,
*xARNH?AKA_£ﬂ?§RNMENT SECRETARIAT,
v:gH§§n"sGgnH@,"aamannans.

 NAT1GNA£s__"HI L§§ﬁWAY MIT!-IIBRITY er mam,

 A GUVKEBERENT OF INDIA UR13ER'I'A!{ING,

T3{«u&a,1, ERSTERH AVENUE, Manmnanx sams,
'.usw'eguH1-110 065.

 :2-.J".%'rIé3-z; D31>::'I'~z' cmomxssxmmn or comancxan

Tnxss {IﬂT.},

T Ciruzsx.

... RESPODENTS.



-.
in
II

an machines, aquipmants, capital gaods aha

canstrurtian materials procured :9:

implemantation of tbs project until ¢¢m1etiqnr¢£¥.

the praject wnrk, turthar a5sai1in§m :fﬁ§f*V"

corractnaaa at the madifiad ggrtificatéiaﬂhraﬁ

29.03.2007. bearing aemmn 17-i.__ ::1fm.;2da.3;'._' 'g.».is'2:..-m,é,_.«'.'.,_.:'

by 'him firat: respondent, vzizigz A:$'n.§xu:e-.1.-"--'A

the second caae seeking a dibﬁrtionVﬁir§§ﬁi$g rhe
rasponaents 1 ta 3 .§a_ iﬁﬁﬁgirguﬁcartifiéaiﬁ in
their favuur grantiﬁ§a ﬁre: s:gng3 Entry tax
exemption far «tﬁé. gggjagt t£r§m.’35.06.2o61 to
31.12.2005 ;:i.”r§ ijéfirectiona or the:
Han’t:2le ccintainad in the File
Elatinq at .__$§::£ial_ ‘§§§:§:_.”1.f.*&f§~’and 140,. and farther
shaking-axdiraﬁriar ﬁe {ha respondent: 1 to 3 and
frﬁxtorrafﬂrd tar éhﬁira amount at manay tuwaxds

§trt§ ‘$ﬁtry V§$g callactad by than from tha

“*. Vpetitiﬁnera air resyect at the period from

Vra_u3Q.O6.2@ﬁ§; onwards, presented the in$tant Writ

‘. :r§ti£ians.

‘ g *3; I have heard the learned Cuunsel far the

‘r fyatitianara and Laarne ASA far respendants 1 to

–_ rﬁ”~43 in first petition far raspandents 1. ta 3
_ r _”WwMﬂ”

as
6!
II

and 5 in the saccmci gatitzian, and lea:-and counsal

:43: the raurth mapandant.

a3. The undiaputad tact: at the

that, trw patzitzizxner hernia is at c9mpja.s::rv.A4_:§sn§§fged >

in business at dew-ulepment

projects, they being _s_9eci4fa;*;:§.’2ad _ iLn ” ‘V

csanstructi-an w-ark haw tak§’rs.’a2p tvi-::i:aa_::tru:§::t:V§:£”:§#V
6-inning of m.556.$O~§Q
tn m.a2?.oo or Hyde’=’;ﬁ5euVt;éhd#-;3¢:;i#§ga;££:5x:$<J.v"'qectiezn or
mi'-'?, in than 3f£;axi.f.'ev,_ out the
""°"'3'- 55 P93? "'?V.3'*;V$<:vez'n:nent at
Karnatsim """ :1. ' x':.»"}ii2;pa«t;*:g ' " V infrastxuctura
palicy, " far exemption at emtry

tax as: §£¢'5i.§§Q§, 18 (H3 they are entitlaci

£0: axjgﬁénwian benafit or examption Imam

""~. 8t::aIt.a: : as the gmjacﬁ; was invcalvixzq

than r-15.196 aroma. and the

;€;¢n1rar'3:aznar-:_t' censidar the. grant at' ﬁazrthaxr

"' :?" "~¢}:a':r;caa;:ssiarﬁfincantivas which are directly mlatnd

A i;h_e'..39raject, depunding upvan the merits of wash

.{:£g:z;_é. The gtetitionax-as' request: has been

V"V'A»».. ::*onsi§ara3 by' trash campatant authczfity at the

respamiants, and grantgd antry tax assumption tar

: 7 1
a paricd of four years in the first case and for

at perimd at three years in the amend case. After

issuing a ncntice to the petitiunerzs, thg

Gavammnt has passed that order dated

baaring Ha.ID!3.'i.'3'4.;"I1!-1.2003, vim

mdifying the roux years' pariccl__»::.f

axamtion to threw Years oniyf ';

law, without raferenca ciaurier
without conaidaring the d:i.re%::§rVr:;_=xs;:3;_V_ I-Izes.133 Agnd h’ésa§.””~:é.jpf$roved tha
exemption for céf..”r3;V¥*t§z.~..2.::V4:2é; and in the
second * Hirrster–in-charge for
inrraatrzrizgrzré far extension of the

exempt: an y§.S’.a.r $ as provided undar clause

‘i3_1:h§~-1$£2fa_;–tha. prr$t:§imings at’ the Government Vida

ixt;’nai{fJrn49r;’ ‘afgaita at’ the rightful approval by

Finance Minister, the Under

3§gcreﬁary;gt,§ Bmrernment has grcceeded to pass the

rtlrdar in the first case mrsdifying the

—-.éx§;:}rat’ion pariod from roux years to thraé yams,

in the second case, has mat extended that

r¢ei:ie1.’ sarught far, i.e., for enhancement at the

exemption pariad from threw years to four wars.

/aw.

: 8 2
Kaéping in viaw this background as stated supra,

the gatitiuners felt necessitated ta file the

instant Writ Patiticnx for appropriate reliefs.

3. hits: careful perusal at the matarial bu

reccrd and aftar micrastcpic avaluation _g£ £ﬁ§? ~

pracaadings of thu appallata authorityi hf »§h§V “%

Saint Secretary ta the G9varnment;~Infﬁaﬁfiﬁﬁﬁﬁré;A

navalapmant napartmant, baari$gV7§dfInﬁci?{,inﬁ;j7

2:393, dated 2s.u3.2uu’r, i’ié._ ‘ex:;ergAé’aV__ 4:.–2;g’£;,,A
far as the first ﬁri§_Beti§i§ﬁ is cﬁﬁceiﬁgﬁg th¢
faur ‘years Stata Entr§’.Tﬁx%;§§ém§§ian has been
granted and in the sa¢aaﬁ ﬁri;P3§Eiﬁi§n; tha in w

aharga Minis:§£f}§h§ z§§gravad ta extend the

benefit ufv feat _§e@r§:=énd the aamn has been

_orderg§ am fouﬁd_@t iﬁk gaga 98 in Annexure « J.

* *5, gtﬁgﬁ significant ta nata that. as per
th§= *pr$§i§;¢ﬁ§x qr the Karnataka Gavernment

–§Tran§feﬂ Jbf” Easiness: Rulea 1977, (hereinafter

« c§l1e§ a§””Businass Rules” in short), the Finance

4:aﬁnistéx may call far payers tram any Department

T inuﬁhich ﬁinanaial canaidaration is invulvad and

AA””he has get every right 53 get aule 15(2> and as

yer Rule 1?(23 no oaal which requixas
“wﬂMﬂ”,__

: 8 3
gravious consultation with the Finance napartmant
under this rule but in which Finance Departmsnt

has ﬁat concurreﬁ may be yrucaeded with unless 3

da¢isian to that affect has bean taken A9¥5tt§§gt~

Cabinet and as par Rule 33(1: and {2} suﬁjaat:t§Vt”k

the pravisians at thasa raiser tn; Eini§tér;iﬁi.”

charge may aispaaa qr all tas§§’:ati$i#§;t£ﬂj7t

Departments undar his can”t::¢.1, amid
ans Department is coagarned ﬁfth a ca§¢«$ﬁd there
ia a difference v§£”_A§pin$éntt:a§twaan the
napartmants, tha_ Miniat§;–iﬁ§gh§h§§3;£zy decide

the issue, _if4éh§V.i3 fih-ﬁhagﬁé was both the

D¢gartmeﬁt$t°Iﬁt$ﬁ$te ﬁt theﬁt relevant Rules as
:¢£er:edtapuv§,*thtftutﬁtrity has not loaked into

an: .raf9rraé* tar thé*_£é$pandents herein and has

;”§:aca§Ee¢t and iésaaa’ the impugned certificate,

“wi;th£:’ut_ “v..g’a:§§:s–nc.a ta Clause 13:13:. and the

t”x_’ apgbﬁﬁtlvttécﬁided by the ccncerned in-charge

itw. Miniateg and also iailed ta considgr specifically

“I:”t;.-.9.’ iinvastmnat has involved more than 33.100

t¢r¢§és} and the Gavnrnmsnt aan axtand Iurthar

T ttbancaasions, atc., directly ta tha person

*””depending upon the marita qr each case.

7. In the instant cams, tirst: raasmndont

has mt taken any decision having xregarci 11¢ tag

merits and demrita «:2: the case, there

whisp-as: regarding why he wants to _

axemptien pariad tron: four yea;-g’ _to thr6§’_’v}?é#;:5 ‘4

and why he did not want ta :§=:;il;at§fr§i},.lﬁr.’ Vmittﬁngi

the benefit of rmu: 3r=ears.»tr:r__ thé’A.§&cund.’A@;f9:j,§c§§, ‘V

isﬂmcjaminq farm. pan-

conducting propar ﬁaropez
decision strictly in!’ rolavant
praviaiana at th§ act hug an1§$ a9§§i§ah1a to the

facts and V”-ﬁhaéae cases, has
prcceedtﬁ’ _ ivhiﬁiﬁgned ccntificate.
Theraroréu. ai:;V <11' imagination, the

impugn-Va_ci_ Uréiaxf' ;:a':ssA£.dV"'*i}ida Annexzma –~ .3 ciated

¢;.'.n::::3A»A:$'1':"v—-'.-'23' sustainable: and this matter

mcergsideration

':#aq§.iir«a s'v.&,kV_*-. afresh, after affording

.1:/i

re.aTa. and as per

.’_ Il:I..1″~.’-:.:i’1rSsau1*$s Rulaz, 1977, as referred above.

a. In the Light % at the facts and

circumstana-as of them: cases, i’.P.10309f20G’?

filed by the patitianar is allawad in part.

quaahing the mndified Certificate issued by 5&5

firxt responaent bearing Na.IDD.1T4.ID,ﬁ§ﬁé; ;

dated 28.33.2387 Vida Anaexura–J. Matter ?st#ﬁ$§M ” M

remitted back far frash dec:i.s:Z.–a*r1»–.in 3:_}: é§§.~

writ Pstiticns in accaraancai3wi£h iﬁw;. aft§rj7

azfarding reasvnable ¢§§a;tu§i{gV_u $§§ “~th§
petitionera in the ;ight _§f qb§er§ati§p:JEmada
supra, awd dispase ﬁr in; §am§”a2 expsditiousry
as paaaibla, at any rata ﬁiﬁﬁ@ﬁ Q §§Eia§ or eight
H?) vaaks .f::<:§_::r<.~;1' +:"t*§:;'xa ' _Vv::.s::. ::;.»a¢ the capy at'
this Grder-i'. K :ﬁ K a ' ; V
W.2;i§O4€?$0#%l–T_ Qtan€§W disposed qf

acccrdinﬁly}.V

Sd/-

#mz~:}’1*1. 0;: ‘. znéﬁa. -Tudgé

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M/S Afcons Infrastructure Ltd vs Government Of Karnataka on 17 March, 2008

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