IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 3RD AUGUST 2011 / 12TH SRAVANA 1933 WP(C).No. 4801 of 2007(V) ----------------------------------- PETITIONERS: 1. K.BHASKARAN, BHAGHYALAKSHMI LOTTERY, KUMBEL P.O., KOLENCHERY. 2. T.V.MOHANRAJ, SREESHMA & GREESHMA, P.O.IRITTY, KANNUR. 3. K.F.JAMES, K.K.FRANCIS & SONS, NEAR MARKET, KUTTIADI, KOZHIKODE. 4. M.DAMODARAN, THARA, CHERUKUNNU, KANNUR. 5. V.UMESHAN, NEW LUCKY CENTRE, NEAR MUNICIPAL BUS STAND, KANNUR. 6. V.VINODAN, BUNK B11, OPP. STADIUM PAVILION, KANNUR-1. 7. C.P.CHANDRAN, POWER ELECTRONICS, NCC ROAD, THALASSERY. BY ADV. SRI.GEORGE POONTHOTTAM SMT.PRINCY XAVIER RESPONDENTS: 1. STATE OF KERALA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, THIRUVANANTHAPURAM. 2. THE COMMISSIONER OF COMMERCIAL TAXES, THIRUVANANTHAPURAM. 3. THE SALES TAX OFFICER, OFFICE OF THE COMMERCIAL TAX OFFICER, TALIPARAMBA. 4. THE SALES TAX OFFICER, OFFICE OF THE COMMERCIAL TAX OFFICER, KUTHUPARAMBA. 5. THE ASSISTANT COMMISSIONER (KVAT), SPECIAL GRADE-I, KOZHIKODE. 6. THE COMMERCIAL TAX OFFICER, IIND CIRCLE, KANNUR. 7. THE COMMERCIAL TAX OFFICER, IIIRD CIRCLE, KANNUR. 8. THE COMMERCIAL TAX OFFICER, IIND CIRCLE, THALASSERY. BY GOVT. PLEADER SRI.V.K.SHAMSUDEEN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN WPC 4801/07 PETITIONER'S EXHIBITS: EXT. P1TRUE COPY OF THE ORDER OF THE SUPREME COURT DT. 27.7.06 EXT. P2TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.3670/ 2006 DT. 24.1.07 TO THE FIRST PETITIONER EXT. P3TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.3293/ 2006(II)/02-03 DT. 22.1.07 TO THE SECOND PETITIONER EXT. P4TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.3293/ 2006(II)/03-04 DT. 22.1.07 TO THE SECOND PETITIONER EXT. P5TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.3293/ 2006(II)/04-05 DT. 22.1.07 TO THE SECOND PETITIONER EXT. P6TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.2895/ 2006(II)/02-03 DT. 22.1.07 TO THE THIRD PETITIONER EXT. P7TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.28953/ 2006(II)/03-04 DT. 22.1.07 TO THE THIRD PETITIONER EXT. P8TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.3515 NEW/ 03-04 (A-2437/06(12) DT. 22.1.07 TO THE FOURTH PETITIONER EXT. P9TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.3515 NEW/ 02-03 (A-2437/06(12) DT. 22.1.07 TO THE FOURTH PETITIONER EXT. P10 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.3515 NEW/ 03-04 (A-2437/06(12) DT. 22.1.07 TO THE FOURTH PETITIONER EXT. P11 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.1790/02-03 (21) DT. NIL TO THE FIFTH PETITIONER EXT. P12 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO . A.1790/03-04 (21) DT. NIL TO THE FIFTH PETITIONER EXT6. P13 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.1790/04-05 (21) DT. NIL TO THE FIFTH PETITIONER EXT. P14 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.1790/02-03 (21) DT. NIL TO THE FIFTH PETITIONER EXT. P15 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO.A.1790/03-04 (19) DT. NIL TO THE SIXTH PETITIONER EXT. P16 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.1790/04-05 (19) DT. NIL TO THE SIXTH PETITIONER EXT. P17 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.3.1129/02-03 DT. 27.1.07 TO THE SEVENTH PETITIONER EXT. P18 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.3.1129/03-04 DT. 27.1.07 TO THE SEVENTH PETITIONER EXT. P19 TRUE COPY OF THE NOTICE UNDER SECTION 17(3) OF THE KGST ACT NO. A.3.1129/04-05 DT. 27.1.07 TO THE SEVENTH PETITIONER EXT. P20 TRUE COPY OF THE PRE ASSESSMENT NOTICEUNDER SECTION 17(3) OF THE KGST ACT NO.B2.3293/06(11)/04-05 DT. 31.1.07 TO THE SECOND PETITIONER EXT. P21 TRUE COPY OF THE INTERIM ORDER IN WPC 4002/07 DT. 6.2.07 /TRUE COPY P.R.Ramachandra Menon, J. ------------------------------------------- W.P.(C)No.4801 of 2007 V ------------------------------------------- Dated this the 3rd day of August, 2011 JUDGMENT The prayers in the writ petition are as follows: “i. Declare that Section 5BA of the KGST Act, providing for levy of licence fee in lieu of Sales Tax on sale of lottery is unconstitutional and beyond the legislative powers of the State and hence unenforceable. ii. Call for the records leading up to Exhibits P2 to P20 notices and to quash the same by the issuance of a writ of certiorari or such other writ, order or direction. iii. Issue a writ declaring that the demand made by the respondents through Exhibits P2 to P20 series of notices is contrary to the order of the Commissioner and the judgments in so far as the dealers in Kerala are concerned. iv. Grant such other further reliefs as may be prayed for and which this Hon'ble Court deems fit in the circumstances to grant.” 2. Learned counsel for the petitioners submits that the charging provision, that is, Section 5BA of the Kerala General Sales Tax Act, has already been set aside by this Court. The law has also become final by virtue of the authoritative pronouncement made by the Apex WPC 4801/07 2 Court on the point as well. It is stated that the matter is squarely covered by the common judgment passed by this Court in O.P.No. 4002/2007 and connected cases, whereby, the impugned provision, that is Section 5BA of the KGST Act, was declared as ultravires and unconstitutional, in turn, allowing the concerned writ petitions restraining the State and its officials from collecting any tax or licence fee under the KGST Act from the petitioners/dealers of lottery tickets. It is also brought to the notice of this Court that the said verdict was challenged in W.A.No.1287/2007, which, however, was dismissed observing that the verdict was in consonance with the Constitution Bench decision of the Supreme Court in Sunrise Associates v. Government of NCT of Delhi & others ((2006) 5 SCC 603). In the above circumstances, petitioners are entitled to succeed. The writ petition is allowed and the respondents are restrained from effecting any recovery from the petitioners as aforesaid. No costs. (P.R.Ramachandra Menon, Judge) tkv