IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH TUESDAY, THE 16TH SEPTEMBER 2008 / 25TH BHADRA 1930 WP(C).No. 15162 of 2008(E) ----------------------------------------------- PETITIONER: ------------------- M/S.WOODRICH VENTURES PVT. LTD., 44/62, S.R.M.ROAD, ERNAKULAM, KOCHI-682 018, REPRESENTED BY ITS DIRECTOR, AJIT MOOPAN. BY ADV. SRI.V.P.SUKUMAR SRI.JAIRAM.V.MENON RESPONDENTS: ----------------------- 1. THE COMMERCIAL TAX OFFICER (AA), OFFICE OF THE DEPUTY COMMISSIONER (AA), COMMERCIAL TAXES, ERNAKULAM. 2. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM. 3. THE CHIEF CONSERVATOR OF FORESTS, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SHRI C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN WPC(C). 15162 OF 2008 E PETITIONER'S EXHIBITS: EXT.P1TRUE COPY OF THE NOTICE DATED NIL ISSUED TO THE PETITIONER BY THE FIRST RESPONDENT. EXT.P2TRUE COPY OF THE REPLY DATED 18.2.2008 FILED BY PETEITIONER BEFORE FIRST RESPONDENT. EXT.P3TRUE COPY OF THE ORDER DATED 29.2.2008 PASSED BY THE FIRST RESPONDENT FOR 2005 - 06. EXT.P4TRUE COPY OF THE REPRESENTATION DATED 12.5.2008 SUBMITTED BY T4HE PETITIONER BEFORE THE FIRST RESPONDENT U/S.66 OF THE KVAT ACT. RESPONDENTS' EXHIBITS: NIL. // TRUE COPY// PS TO JUDGE K. M. JOSEPH, J. -------------------------------------- W.P.C. NO. 15162 OF 2008 E ---------------------------------------- Dated this the 16th September, 2008 JUDGMENT Petitioner challenges Ext.P3. Ext.P3 is an order of assessment passed against the petitioner Firm under the Kerala Value Added Tax Act, 2003 for the assessment year 2005 - 2006. According to petitioner, it is engaged in the business of manufacture and export sale of veneer. It purchases raw- materials, mainly rose wood from within the State and also outside. The intra State purchases, it is the case of the petitioner, are mainly from the Forest Depots. A registered dealer under Section 11(3) of the KVAT Act is eligible for input tax credit. There was an audit visit and notice was issued as Ext.P1, pointing out that the claim of input tax credit in respect of Rs.5,79,645/= cannot be allowed in respect of purchases from the Government Timber Depots, in view of Section 11(5)(a) and (m) of the Act. Petitioner filed reply as Ext.P2. But, by Ext.P3 assessment, the assessing authority rejected the claim for input WPC.15162/08 E 2 tax credit on purchases from the Kerala Forest Department. 2. I heard the learned counsel appearing for the petitioner and the learned Government Pleader. Subsequent to the filing of the Writ Petition, the Government has issued Circular dated 30.8.2008. It, inter alia, provides as follows: "In the circumstances, the following instructions are issued: (i) xx xx xx xx (ii)Till such Government departments, autonomous bodies, local authorities take registration, the cash receipts issued by them in TR5 or in any other form as stipulated in their departmental codes will be treated as the bill in Form 8A/8B of Kerala Value Added Tax Rules and refund claims submitted will be honoured by the Commercial Tax Authorities for refund of claims in relation to transactions for the period upto 2008 - 2009." 3. In the light of the subsequent development in the form of the aforesaid Circular, I feel that the matter has to be reconsidered. In such circumstances, the Writ Petition is disposed of as follows: WPC.15162/08 E 3 In view of the fact that the matter has to be redone, Ext.P3 is quashed. Within two weeks from the date of production of a copy of this Judgment before the first respondent, the first respondent will consider whether the chalans evidencing payment of the input tax on timber purchased from the Forest Department can be treated as receipt in any other Form as stipulated in the Departmental Code as contemplated in the Circular as aforesaid. If it can be so considered, then, the necessary relief due to the petitioner will be granted by the first respondent. This shall be done within a period of one month from the date of production of a copy of this Judgment. If the first respondent is of the view that the chalans produced by the petitioner will not satisfy the stipulation in the Circular, the first respondent shall intimate the same to the petitioner within two weeks from the date of production of a copy of this Judgment. Thereupon, if the petitioner approaches the concerned Depots of the Forest Department from where the purchases were made and requests for issuance of receipt in any Form as WPC.15162/08 E 4 stipulated in the Departmental Code of the Forest Department, the concerned Officers in the Depots will issue the Receipts in the Form stipulated in the Departmental Code in respect of the payments as evidenced by the chalans made by the petitioner. This shall be done within a period of two weeks from the date of the request being made before the concerned Depot Officers. Upon the petitioner producing such receipts in such Form issued by the Forest Department, the first respondent will pass appropriate orders granting such reliefs to the petitioner as it is entitled to, within a period of three weeks from the date of production of the receipts. Sd/= K. M. JOSEPH, JUDGE kbk. //True Copy// PS to Judge