IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.VINOD CHANDRAN TUESDAY, THE 15TH NOVEMBER 2011 / 24TH KARTHIKA 1933 OT.Appeal.No. 4 of 2011() ------------------------- (AGAINST THE CLARIFICATION ORDER NO.C3/10790/11/CT DATED 01/07/2011) APPELLANT / APPLICANT ----------------------------- M/S.WHIRLPOOL OF INDIA LTD, ERNAKULAM. BY ADV. SMT.K.LATHA RESPONDENT(S): /STATE -------------------- THE STATE OF KERALA. MR.BOBBY JOHN, GOVERNMENT PLEADER THIS OTHER TAX APPEAL HAVING COME UP FOR ADMISSION ON 15/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.T.AP.NO.4/2011 APPENDIX APPELLANT'S EXHIBITS ANNEXURE-A1 : COPY OF CLARIFICATION ORDER NO.C3/10790/11/CT DATED 01/07/2011 ISSUED BY THE DEPARTMENT OF COMMERCIAL TAXES, KERALA TO THE APPELLANT. //TRUE COPY// PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR & K.VINOD CHANDRAN, JJ. .................................................................... O.T.A.No.4 of 2011 .................................................................... Dated this the 15th day of November, 2011. J U D G M E N T Ramachandran Nair, J. The appellant is engaged in marketing of micro wave ovens in Kerala. The product is manufactured in appellant's factory outside Kerala and the same is brought to Kerala on stock transfer and sold as local sales. As an incentive to customers, the appellant on sale of micro wave ovens supplies free of cost plastic utensils and other gadgets for use in micro wave ovens. These items supplied free of cost are purchased by the appellant from States outside Kerala. The appellant's contention is that the appellant is entitled to concessional rate of tax on interstate purchase of these items for free supply along with micro wave ovens sold to customers. However, the appellant entertains a doubt as to whether the appellant is entitled to concessional rate of tax on interstate purchase of the items for free supply along with micro wave ovens sold to customers. Therefore, the appellant sought a clarification O.T.Ap.No.4/2011 -2- from the authority for clarification constituted under Section 94 of the Kerala Value Added Tax Act (hereinafter called as the KVAT Act for short) as to whether the appellant can avail concessional rate of tax on interstate purchase of plastic utensils and other gadgets sold free of cost along with micro wave ovens. The authority for clarification, however, rejected the application for the reason that it has no authority to clarify on the rate of tax applicable under the CST Act on interstate sale of goods made to appellant in Kerala by suppliers stationed in other States. It is against this order of the authority for clarification, the appellant has filed this appeal before us. 2. After hearing the learned counsel for the appellant and the learned Government Pleader, we are of the view that the authority for clarification constituted under Section 94 of the KVAT Act rightly declined to entertain the application for clarification filed by the appellant because the jurisdiction of the said authority for clarification is only on matters arising under the KVAT Act. Since the clarification on rate of tax O.T.Ap.No.4/2011 -3- applied by the appellant is on the interstate sales made by suppliers outside Kerala to the appellant in Kerala, the authority for clarification constituted under Section 94 of the KVAT Act does not have the jurisdiction to entertain the application. We, therefore uphold the impugned order of the said authority and dismiss the appeal. 3. Incidentally, we make it clear that in the event the appellant files any other application for clarification as to whether the free supply of articles along with sale of micro wave ovens attract tax under the KVAT Act, the authority for clarification is bound to clarify the same. Therefore, if any such application for clarification is filed by the appellant, the authority should pass orders thereon without any delay. This O.T.Appeal is dismissed but with the above observations. (C.N.RAMACHANDRAN NAIR, JUDGE) (K.VINOD CHANDRAN, JUDGE) jg