IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR FRIDAY, THE 3RD DECEMBER 2010 / 12TH AGRAHAYANA 1932 WP(C).No. 14928 of 2009(I) -------------------------- PETITIONERS: -------------------- 1. M/S.SHRI.SABHARI MOTORS, MAJOR INDUSTRIAL ESTATE, SOUTH KALAMASSERY, REPRESENTED BY ITS PROPRIETOR, G.SREEKUMARAN NAIR. 2. M/S.KINGSTON AUTOMIBILES, KOSHNAKAVU, J.S.M.HOSPITAL ROAD, CHATHANNOOR, KOLLAM, REPRESENTED BY SRI.B.MADHUKUMAR. BY ADV. SRI.K.G.ANIL BABU RESPONDENTS: ---------------------- 1. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY,GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. THE COMMISSIONER, COMMERCIAL TAXES, THIRUVANANTHAPURAM. 3. THE TRANSPORT COMMISSIONER, HEAD OFFICE, MOTOR VEHICLES DEPARTMENT,THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER, SRI.K.B.PRADEEP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 3/ 12 / 2010 , THE COURT ON 03/12/2010 DELIVERED THE FOLLOWING: VK WP(C).No. 14928 of 2009(I) -------------------------------------- APPENDIX ---------------- PETITIONERS' EXHIBITS ------------------------------------ EXT.P1. COPY OF THE GUIDELINES ISSUED BY THE TATA MOTORS EXT.P2. COPY OF THE CIRCULAR NO.14/2003 ISSUED BY THE 3RD RESPONDENT DATED 10.03.2003. EXT.P3. COPY OF THE CIRCULAR NO.8/2004 C.T.ISSUED BY THE 2ND RESPONDENT DATED 26.03.2004. RESPONDENTS EXHIBITS : NIL ------------------------------------ / TRUE COPY / P.A. TO JUDGE VK T.R.RAMACHANDRAN NAIR,J. ------------------------------------- W.P.(C)No.14928 Of 2009-I ----------------------------------------------------- DATED THIS THE 3rd DAY OF DECEMBER, 2010 J U D G M E N T The petitioners herein are industrial units engaged in automobile body building works. They are registered dealers under the Kerala General Sales Tax Act and Kerala Value Added Tax Act. Both are assessees under the respective Offices also. The petitioners are manufacturing and fitting automobile bodies on automobile chasis like tipper lorries and other heavy, medium, light and small automobiles. After completing the body building, petitioners issue Form 22A Part II prescribed under the Central Sales Tax Act and the Rules made thereunder, based on which vehicles are statutorily registered. Since their activities are coming within the definition of sale under the KGST Act and KVAT Act, they are registered as dealers and pay tax to the Government on their taxable turnover. It is the complaint of the petitioners that there are lot of automobile body builders who have no registration either with the Industries Department or Sales Tax Offices ; but bogus Form 22A are issued in the name of non-existent units. This results in gross violation of law and W.P.(C)No.14928/09 -2- specified quantity of standards are not maintained and the State is loosing heavy revenue towards tax. 2. The petitioners have not raised complaint against any particular individual/institution or the like. 3. The respondents have filed a statement. It is pointed out in the statement that Section 15 of the Kerala Value Added Tax Act 2003 provides that every dealer whose turnover is not less than five lakhs shall get himself registered under the Act. Therefore, the activities of a builder is taxable sale and there is a transfer of property in goods by one person to another in the course of trade or business for valuable consideration to include the said activities under the definition of sale under Section 2 (Xliii). There is a liability to collect and pay tax when the total turnover is not less than 10 lakhs. It is pointed out that in the case of violation of the provisions on the part of any of the dealer which is noticed by the Department of Commercial Taxes, the Department will take appropriate action against the dealer who is violating the statutory requirements under the Kerala Value Added Tax Act, 2003 . 4. Therefore, if the petitioners have got any specific W.P.(C)No.14928/09 -3- grievance about any particular dealer, they will be free to approach the Commissioner of Commercial Taxes, who will look into the complaint and if violation is noted, appropriate remedial action will also be taken. Leaving open the said remedy, the Writ Petition is disposed of. Sd/-( T.R.RAMACHANDRAN NAIR, JUDGE. ) dsn