IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR MONDAY, THE 31ST MARCH 2008 / 11TH CHAITHRA 1930 WP(C).No. 10909 of 2008(W) -------------------------- PETITIONER: ------------ P.JACOB KURIAN, M/S.INDUS TRADING COMPANY, 702A, EDAPPALLY NORTH P.O., COCHIN-24. BY ADV. SRI.JOSEPH JERARD SAMSOM RODRIGUES RESPONDENTS: ------------- 1. DEPUTY TAHSILDAR (RR), KANAYANNUR TALUK, ERNAKULAM, KOCHI-682 011. 2. COMMERCIAL TAX OFFICER-II, FIRST CIRCLE, KALAMASSERY. BY G.P. SRI. E.P. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31/03/2008 ALONG WITH WPC 10943 OF 2008 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO.10909 & 10943 OF 2008 -------------------------------------------- Dated this the 31st day of March, 2008 JUDGMENT The common petitioner in both the Writ Petitions is challenging recovery proceedings for recovery of arrears of sales tax due for the years 2001-02 and 2002-03 on the ground that rubber trees purchased by the petitioner from Harrison Malayalam Ltd. was subject to recovery of tax at the full rate by the company. Petitioner has produced certificate issued by the company showing recovery at the point of first sale. However, Government Pleader submitted that since the commodity is taxable at two points, petitioner is liable to pay tax on last sale. I do not think petitioner's assessments are tenable because timber at the relevant time was in the Vth Schedule taxable at first sale point as well as at last point of sale in the State, if both dealers are registered under the Act. The Assessing Officer does not appear to have verified with the assessing officer of the company about the total sales and payment of tax made by the company for sale of rubber trees to the petitioner. In the circumstances, I dispose of the WPs. with the 2 following directions. Petitioner will provisionally deposit Rs. 50,000/- towards demand for both the years before the second respondent within two weeks from now. Petitioner will along with it produce documents of purchase of timber from Harrison Malayalam Ltd. about which certificates are issued by the company before the second respondent. There will be direction to the second respondent to call for assessment particulars from the assessing officer of the company, recheck the payments made by the company and issue fresh orders rectifying the petitioner's assessments, granting exemption or reduction to the extent permissible. Even if there is no tax liability, it will be open to the officer to consider penalty or compounding charges for petitioner carrying on business without registration. Recovery proceedings will be kept in abeyance for two weeks from now, and if payment is made as above, recovery thereafter will be based on rectified orders issued by the second respondent after enquiry as directed above. (C.N. RAMACHANDRAN NAIR) Judge 3 kk