SURABHI STEELS PVT LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) IN view of the common nature of the contentions taken up by the parties, and reliefs prayed for, the above four original petitions were jointly heard, and are being disposed of by a common judgment.

(2.) IN O. P. Nos. 7241 and 7687 of 2001, the State has filed statements clarifying their stand, and it had been submitted that contentions were identical. Preliminary objections were raised by the State to the effect that assessment orders are yet to be issued and the original petitions are premature. And after assessment there is statutory remedy of appeal available to them.

(3.) THE claims are projected on the following three broad propositions : I. S. R. O. No. 263 of 1998 and 702 of 1998 governs the issue, and demand of entry tax on a misinterpretation thereof is impermissible. II. THE goods having suffered Central sales tax it was improper and illegal to subject the goods for further taxation, and it violates articles 301 and 304 of the Constitution of India. III. Alternatively, if in case the benefit of the S. R. O. is not extended to the petitioners, sections 3 and 4 of the Entry Tax Act are to be read down in such a manner as to exclude from its purview, goods exigible to taxation under the Central Sales Tax Act, by giving credit to the tax paid. THE State stoutly opposes the claim. THEy submit that the validity of the Entry Tax Act had been upheld by this Court, and it was no more open to challenge at the hands of the petitioners. It is further submitted therefore that the issue of reading down the provisions never arises. THE original petitions are premature if not misconceived. Over and above these the benefit of S. R. O. Nos. 263 and 702 were not intended to be made available to the persons like the petitioners, and the demand of entry tax and penalty was therefore admissible under the statute. THE factual statements filed substantially supported the above submissions. I may also make it clear that the decision in these original petitions solely concern about the demand made about the ingot moulds imported by the petitioners. In order to appreciate the situation arising in the case, it may be necessary that the nature of the business of the petitioners are understood. THE process is manufacturing of steel and alloys. Steel scrap and ferro alloys are melted by adding additives and the molten liquid is poured into ingot moulds. This gradually solidifies as M. S. ingots and are later removed. THE ingot moulds are of cast iron. After putting them for short such use as receptacles, the ingot moulds which lose shape are on their turn subjected to melting again to make steel products. According to the petitioners, the goods purchased, viz. , ingot moulds from outside the State in the course of inter-State movement had suffered Central sales tax and are ultimately raw materials for manufacture of steel, and it was precisely for taking care of those nature of transaction and situations that the orders had been issued by the Government. THE present interpretation attempted by the Revenue is therefore, according to them, impermissible.