IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 23RD NOVEMBER 2009 / 2ND AGRAHAYANA 1931 WP(C).No. 27167 of 2009(M) --------------------------------------- PETITIONER(S): ---------------------- E.A. SHAFI, EZHUTHANIKKATTU INDUSTRIES, THRIKKALATHOOR, MAVATTUPUZHA. BY ADV. SMT.S.K.DEVI MR.SANTHOSH P.ABRAHAM RESPONDENT(S): ------------------------ 1. THE COMMERCIAL TAX OFFICER (VAT) DEPT.OF COMMERCIAL TAXES, MUVATTUPUZHA. 2. STATE OF KERALA, REPRESENTED BY ITS FINANCE SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM. R1 & R2 BY GOVERNMENT PLEADER MR.C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/11/2009,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. C.K.ABDUL REHIM,J. -------------------------------------------- WP(C).No. 27167 of 2009 --------------------------------------------- Dated this the 23rd day of November, 2009. JUDGMENT 1. The writ petition is filed challenging Ext.P2 letter issued by the first respondent, refusing the request for issuance of 'C- Form' for purchasing a “JCB 3 DX Excavator Loader” from outside the State on payment of concessional rate of CST. The reason for refusal to issue 'C Form' stated in Ext.P2 is that 'C-Form' can be issued to an assessee only for the following items:- (1) Use in manufacture/processing of goods for sale. (2) Use in Mining. (3)Use in generation/distribution of power packing of goods for sale/resale and are covered by registration certificate issued to the assessee under the Central Sales Tax Act 1956. 2. After Ext.P2 letter another request made by the petitioner for inclusion of the above said 'Excavator Loader' in the registration certificate was also rejected as evidenced by Ext.P3. WPC.27167/2009 2 3. According to the petitioner, he is running a saw mill and he is purchasing standing trees from land owners which is being cut down and transported from properties where vehicular traffic is not feasible. In Ext.P1 request the petitioner submitted that he was using an elephant by name 'Kiran' which died on 1.5.2008. It is also stated that the 'crain' which is being used in the mill could not be taken to the properties where the trees are standing which situate mostly in hilly tracks. Therefore the JCB is intended to be purchased for facilitating transportation of standing timber being cut from various properties, which is situated without any motorable access. According to the petitioner JCB which is intended to be purchased is a machinery to be used as an equipment or tool in the processing of the materials at the saw mill and therefore the rejection based on the above ground is not sustainable. 4. In this regard the petitioner had pointed out section 8 (3)(b) of the CST Act 1956 and Rule 13 of the Central Sales Tax (R& T) Rules 1957. Going by Rule 13 it is clarified that the goods referred to in clause (b) of sub section (3) of section 8 which can be purchased by a registered dealer includes machinery, plant, WPC.27167/2009 3 equipment, tools, stores, spare parts, accessories, fuel or lubricants in the manufacture or processing of goods for sales. From Ext.P2 it is evident that the first respondent while refusing to issue C-Form has not considered the fact as to whether the JCB intended to be purchased on concessional rate is a machinery, equipment or tool which can be used in the manufacture or processing of the goods dealt with by the petitioner. Therefore I am of the opinion that the matter needs reconsideration at the hands of the first respondent. 5. In the result, Ext.P2 is hereby quashed. The first respondent is directed to reconsider Ext.P1 application in the light of section 8(3) of the CST Act read with Rule 13 of the above said Rules. A decision in this regard shall be taken at the earliest considering the exigencies of business activities of the petitioner, at any rate, within a period of one week from the date of receipt of a copy of this judgment . C.K.ABDUL REHIM, JUDGE. Pmn/ WPC.27167/2009 4