KAIL LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The review petitioner is a 100 per cent subsidiary of M/s. Videocon International Ltd., engaged in marketing of products like television, washing machine, etc., in the brand name "Sansui". The products manufactured in the brand name "Sansui" were brought to Kerala and sold by M/s. Videocon International Ltd., to the review petitioner, which in turn made sales of the products to the market. Section 5(2) of the Kerala General Sales Tax Act (hereinafter referred to as "the Act", for short), the constitutional validity of which is upheld by this court, authorises levy of tax on branded goods at the point of sale by the brand name holders treating such sales as deemed first sales by virtue of the fiction available under section 5(2) of the Act. From the very beginning the review petitioner took the stand that it is not a subsidiary of M/s. Videocon International Ltd., which was stated to be the exclusive brand name holder of the products. However during hearing of the revision case, we noticed that sufficient materials are on record to establish that the review petitioner is a subsidiary of M/s. Videocon International Ltd., and it is the brand name holder of "Sansui" in India. Consequently, we upheld the assessment in the revision case, against which the petitioner filed SLP before the Supreme Court. However, without pressing the SLP, the review petitioner got it withdrawn with permission to file appropriate petition before this court. This review petition is filed after withdrawing the SLP filed before the Supreme Court. It is seen from the order of the honourable Supreme Court that the Supreme Court has not considered the case on merit. In the first round of hearing of the review petition, we felt that the review petitioner is trying to mislead this court by contending that it is not a subsidiary of M/s. Videocon International Ltd. We therefore, directed the review petitioner to' file an affidavit form any of the members of the Dhoot family, who hold controlling interest in the review petitioner as well as in M/s. Videocon International Limited, stating the nature of relationship between M/s. Videocon International Limited and M/s. Kitchen Appliances (India) Ltd., the review petitioner herein. It was specifically stated that any effort to mislead the court will lead to dismissal of the review petition with heavy cost. In the affidavit filed by Shri Venugopal, S/o. Late Shri Nandlal Dhoot, pursuant to our above order, though he has raised a contention that strictly the review petitioner is not a subsidiary of M/s. Videocon International Ltd., under the definition clause of the Companies Act, he has honestly admitted the following in paragraph 2 of the affidavit.

(2.) Further statement in paragraph 5 of the affidavit is as follows :

(3.) Similarly in paragraph 6 it is conceded that, Videocon International Ltd. and KAIL Limited as part of Videocon group. The fact that during 1999-2000, the review petitioner had manufactured 2057 colour television sets and 961 black and white television sets in "Sansui" brand at Calcutta factory is also conceded.