HLL LIFECARE LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner's claim for refund of input tax under sec. 13 of the Kerala Value Added Tax Act, 2003 (for short the Act) for the period from October, 2010 to March, 2015 was declined. The assessing officer rejected the claim alleging that input tax credit cannot be allowed for the purchase of goods used in the manufacture of goods specified in the First Schedule to the Act as provided in sec. 11(5)(e) of the Act. The orders of rejection of refund are impugned in this writ petition.

(2.) Petitioner is a Government of India undertaking engaged in the business of manufacturing and sale of condoms, intrauterine devices, surgical gloves and other healthcare products. It was registered under the erstwhile Act. Petitioner alleges that condoms manufactured by the petitioner are exported to various countries as well as sold indigenously.

(3.) Petitioner claimed refund of the tax paid for the period from 2005 to 2010 in respect of rubber latex and other materials purchased from registered dealers which were used in the manufacture of condoms that were exported, as per sec. 13 of the Act. Due to delay in completing the assessments for the year 2010-11, the said refund applications were not considered. Finally, by order dtd. 4/7/2015, the entire refund due to the petitioner till 2010 was paid. The refund claims for the period uptill September 2010 were also ordered to be refunded to the petitioner, though after much delay.