IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE A.K.BASHEER WEDNESDAY, THE 23RD JULY 2008 / 1ST SRAVANA 1930 ST.Rev..No.121 of 2004 ---------------------------------------- (ORDER DATED 13-12-2002 IN TA.No.287/2002 OF KERALA SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH-I, ERNAKULAM) .................... REV.PETITIONER:APPELLANT:ASSESSEE: ------------------------------------------------------------ DR.REDDY'S LABORATORIES LTD. (FORMERLY AMERICAN REMEDIES LTD) 42-2159E, IIND FLOOR, C.B.TOWERS, K.K.PADMANABHAN ROAD, COCHIN 682 018, REPRESENTED BY ITS POWER OF ATORNEY HOLDER G.R.NAGARAJ, AGED 47 YEARS, S/O. LATE P.G.RAJAGOPAL SETTY, RESIDING AT RAJA VINAYAKA, BULL TEMPLE ROAD, BANGALORE. BY ADV. SRI.P.R.VENKETESH RESPONDENT: RESPONDENT:REVENUE: ---------------------------------------------------------- STATE OF KERALA, REPRESENTED BY THE ASSISSANT COMMISIONER (ASSMT) I, SPECIAL CIRCLE-II ERNAKULAM. BY SENIOIR GOVERNMENT PLEADER SRI.MUHAMMED RAFIQ. THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 23/07/2008, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: H.L.DATTU, C.J. & A.K.BASHEER, J. ------------------------------------------------------ S.T.Rev.No.121 of 2004 --------------------------------------------- Dated, this the 23rd day of July, 2008 O R D E R H.L.Dattu, C.J. The assessee is a registered dealer both under the provisions of the Kerala General Sales Tax Act and Central Sales Tax Act (“KGST Act” and “CST Act” for short). 2. This revision petition pertains to the order of assessment passed by the assessing authority under the provisions of the CST Act. 3. For the assessment year 1997-1998, the assessee had filed its annual returns and in that had claimed tax exemption on the ground that the sales effected by the assessee is only branch transfers and therefore not exigible to levy of tax under the Central Sales Tax provisions. Since the assessee had not produced 'F Forms' in support of the claim so made, the assessing authority, after issuing the notice under Rule 6 (5) of of the CST (Kerala) Rules, has rejected the request of the assessee. The orders passed by the assessing authority is confirmed by the first appellate authority as well as by the Sales Tax Appellate Tribunal. S.T.Rev.No. -2- 4. The assessee being aggrieved by the orders passed by the Sales Tax Appellate Tribunal in T.A.No.287 of 2002 dated 13-12-2002 is before us in this tax revision case. The assessee has framed the following questions of law for our consideration and decision. They are as under: “a). Did not the Tribunal and the Authorities below commit an error in proceeding to hold that the Branch transfers effected by the petitioner is liable to be treated as interstate sale and therefore taxable at the rate of 10%? b). Did not the Tribunal and Authorities below commit an error in accepting the position that interstate branch transfers can be proved by evidence other than 'F Forms' as well? c). Did not the Tribunal and the Authorities below commit an error in denying to grant further time to the assessee to produce other evidence and/or 'F Forms', in the facts and circumstances of the case, including the change in the name of the assessee?” 5. In the normal course, our answer for the aforesaid questions questions of law would have been positive “No”. But, now, S.T.Rev.No. -3- along with the revision petition papers, the assessee has produced 'F Form' declarations and according to it, those 'F Forms' could not be produced before the assessing authority at the time of completion of the assessment proceedings under the provisions of the CST Act. 6. In our opinion, if an opportunity is granted to the assessee to produce the 'F Form' declarations in support of its claim made in the returns for the assessment year 1997-1998, it would not cause any prejudice to the Revenue. In that view of the matter, without expressing any opinion on the questions of law framed by the assessee, we pass the following: Order i). The Revision Petition is disposed of. ii). The assessee is granted 45 day's time from today to produce 'F Form' declarations before the assessing authority in support of its claim made for exemption from payment of tax under the CST Act for the assessment year 1997-1998. iii). If the 'F Form' declarations are produced by the assessee before the assessing authority within the time granted by this Court, the assessing authority is directed to consider the same and pass appropriate orders in accordance with law. S.T.Rev.No. -4- iv). If for any reason, the assessee fails to produce the 'F Form' declarations within the time granted by this Court, the revision petition stands dismissed without reference to this Court once over again. 7. I.A.No.1541 of 2008 is closed. Ordered accordingly. (H.L.DATTU) CHIEF JUSTICE (A.K.BASHEER) JUDGE MS/dk