ESSAR OIL LTD Vs. INTELLIGENCE OFFICER INVESTIGATION BRANCH

JUDGEMENT

(1.) W.P.(C). No. 5893 of 2009 and W.A. No. 1946 of 2009 are filed by the same petitioner - Essar Oil Limited - a public limited Company, hereinafter in the judgment referred to as "the Company", which is a registered dealer on the files of the Assistant Commissioner (Assessment), Special Circle-II, Kochi, under the Kerala General Sales Tax Act, 1963 (hereinafter referred to as "the Act"), dealing in petroleum products.

(2.) W.P.(C). No. 5893 of 2010 is filed challenging the legality of an assessment order dated 21.01.2010 relating to the assessment year 2004-05 under the Act passed against the petitioner. W.A. No. 1946 of 2009 is filed aggrieved by the judgment in W.P.(C). No. 5702 of 2008 dated 19.08.2009, wherein an order imposing a penalty under Section 45A of the Act to the tune of (Editor: The text of the vernacular matter has not been reproduced. Please write to if the vernacular matter is required.) 5,05,79,164/- passed against the Company on 28.12.2006, which was subsequently confirmed by the two revisionary authorities successively on 21.06.2007 and 25.01.2008 respectively was challenged unsuccessfully.

(3.) The Company, as a part of its business, deals in High Speed Diesel (HSD). During the assessment year 2004-05, the Company effected sales of HSD to two purchasers, called "Shebna Enterprises" and "Ifan Enterprises", hereinafter referred to as "purchasing dealers 1 and 2" respectively. The quantity of the HSD sold is 3924 KL and 1980 KL respectively and the value of the goods is (Editor: The text of the vernacular matter has not been reproduced. Please write to if the vernacular matter is required.) 8,07,45,486/- and (Editor: The text of the vernacular matter has not been reproduced. Please write to if the vernacular matter is required.) 4,54,52,424/- respectively. While making the above mentioned sales, the Company also collected sales tax at the rate of 4% ad valorem under the provisions of the KGST Act. Admittedly, the sale of HSD is liable for 24% ad valorem tax under the provisions of the Act, but the Company collected a reduced rate of tax claiming the benefit of a notification issued by the State of Kerala in S.R.O. No. 1091/99 dated 31.12.1999 (hereinafter referred to as "the exemption notification"), which was issued by the State of Kerala in exercise of the powers vested in it under Section 10 of the Act.