IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 1ST FEBRUARY 2008 / 12TH MAGHA 1929 OP.No. 23107 of 2001(A) ----------------------- PETITIONER: ------------------ M/S.M.K.B.COPRA TRADERS, ALUVA, REP: BY ITS MANAGING PARTNER HAJEERA MOHAMMED ALI. BY ADV. SRI.K.K.VIJAYARAGHAVAN SMT.S.K.DEVI SRI.M.RAJ MOHAN SRI.SANTHOSH P.ABRAHAM SRI.DEEPSUR D.JAYAN SRI.FRANKUR D.JAYAN RESPONDENTS: ---------------------- 1. THE ASST.COMMISSIONER (ASSMT.) I, DEPARTMENT OF COMMERCIAL TAXES, SPL.CIRCLE, MATTANCHERY. 2. STATE OF KERALA, REP: BY ITS CHIEF SECRETARY, SECRETARIAT, TRIVANDRUM. BY GOVERNMENT PLEADER SRI.TEK CHAND. THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 01/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP.NO.37807/2001 IN OP.NO.23107/2001-A. DISMISSED. 1.2.2008. Sd/- C.N.Ramachandran Nair, Judge. APPENDIX PETITIONER'S EXHIBITS:- P1: Copy of notice No.24010378/98-99 dtd.28.2.2001 issued by the first respondent. P2: Copy of reply dtd.14.3.2001 filed by petitioner. P3: Copy of assessment order No.24010378/98-99 dtd.15.3.2001 issued by first respondent. P4: Copy of assessment order No.24010378/99-2000 dtd.28.2.2001 issued by the first respondent. RESPONDENTS' EXHIBITS:- Nil. ( true copy ) P.S. TO JUDGE. kvs/- C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- O.P. NO. 23107 OF 2001 -------------------------------------------- Dated this the 1st day of February, 2008 JUDGMENT Petitioner is challenging assessment and demand of tax on copra brought from outside the State and sold in the State on the ground that Entry 5(ii) (b) of the Second Schedule to the KGST Act authorising tax on first sale of copra brought from outside the State is violative of Articles 301 and 304 of the Constitution of India. Petitioner does not state as to how the freedom of inter-State trade is affected on account of levy of tax at first sale point on copra brought from outside the State at the rate of 4%. Copra is a declared item under Section 14 of the CST Act on which tax is levied at 4%. Entry 5(ii)(a) provides for tax on local copra which is taxable at the point of last purchase in the State by a dealer who is liable to pay tax under Section 5 at 4%. Clause (b) of Entry 5(ii) provides for tax at the same rate of 4% on copra brought from outside the state and the point of levy is first sale in the State. In other words, under both the entries tax on copra is only at one point, and at the same rate of 4%. Similar is the scheme of levy of tax on 2 coffee, pepper, etc., where tax on the commodity is at purchase point if the goods originate from Kerala and at sale point, if the goods are brought from outside the State. I do not find any constitutional infirmity in the provisions on incidence of tax. O.P. therefore fails and is dismissed. (C.N. RAMACHANDRAN NAIR) Judge kk 3