IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.BALAKRISHNAN NAIR & THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN THURSDAY, THE 18TH FEBRUARY 2010 / 29TH MAGHA 1931 OP.No. 3874 of 1996(J) ---------------------- PETITIONER: --------------- K.HAMZAKOYA, MAX TRADERS, PALAYAM JUNCTION, KOZHIKODE-2. BY ADV. SRI.V.P.SUKUMAR SRI.K.B.SAJEESH SRI.K.B.BEENA RESPONDENT(S): --------------- 1. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, GOVERNMENT OF KERALA, TRIVANDRUM. 2. THE ADDITIONAL SALES TAX OFFICER II, SALES TAX OFFICE, II CIRCLE, KOZHIKODE. BY GOVERNMENT PLEADER SRI.K.P.PRADEEP THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 18/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: OP No.3874/1996 ORDER ON CMP NO.6774/1996 DISMISSED. 18.02.2010. SD/- K.BALAKRISHNAN NAIR, JUDGE. SD/- P.N.RAVINDRAN, JUDGE. /TRUE COPY/ K. BALAKRISHNAN NAIR & P.N.RAVINDRAN, JJ. ------------------------------ O.P. No.3874/1996-J ------------------------------ Dated this, the 18th day of February, 2010 JUDGMENT Balakrishnan Nair, J. The petitioner is a registered dealer in ready-made garments and hosiery goods. The rate of tax for such goods was 6% up to 31.3.1995. In the finance bill there was a proposal to enhance the tax to 10%. The representatives of the traders represented and according to the petitioner, the Government agreed to consider their grievance sympathetically. Later, when the Finance Act for the year 1995-96 was passed, the percentage of tax was retained as 10%. But, the Government issued Ext.P1 notification, providing inter alia, that for the small-scale units in Kerala, whose turnover does not exceed Rs.50 lakhs, the percentage of tax will be 4%, provided the goods are manufactured and sold within the State. Challenging that notification and alleging that it is discrimination to grant relaxation only to a section of the dealers, the Original OP No.3874/1996 - 2 - Petition was filed. But, we are told that the above mentioned rate of tax and the exemption notification no longer survive with the introduction of Value Added Tax from 1.4.2005. Even if we strike down the exemption granted to Kerala Units and the petitioner gets a level playing ground, the same can operate only prospectively. It can have no retrospective effect. Therefore, owing to efflux of time, the Original Petition has become infructuous, as no effective relief could be granted to the petitioner. Accordingly, the Original Petition is closed as infructuous. K. Balakrishnan Nair, Judge. P.N.Ravindran, Judge. nm.