COLOURGRAPHS Vs. SALES TAX OFFICER III CIRCLE ERNAKULAM

JUDGEMENT

(1.) THE common question that arises for consideration in both the writ petitions is whether the C form can be denied to the petitioner. Since the facts are not very material, I am briefly referring the facts in O. P. No. 12413 of 1991 only. Petitioner is an offset printing press owner and is registered both under the Kerala General Sales Tax Act, 1963 and the Central Sales Tax Act, 1956 and Rules. THE business of the petitioner confined to supply of printed materials, folders, duplex board, cartons, posters and other advertising materials. Petitioner has to secure large stock of papers, inks, chemicals, cotton wastes, with films, polyester films and other allied products which are necessary for manufacturing the goods that are needed by the customers. THEse articles are purchased using "c" form from outside the State. Petitioner can purchase these items at concessional rate, provided they are supported by "c" form, issued by the respondents. In the absence of "c" form certificate petitioner has to pay enhanced rate of tax at 10 per cent. THE "c' form certificates are usually issued by the respondents in book form, each book having not less than 25 blank certificates. THEse certificates are filled up with the value of purchases from outside Kerala and forwarded to the seller there and he despatches such goods supported by "c" form certificate. Petitioner was obtaining the goods on "c" form for the past several years, i. e. , from 1976 onwards.

(2.) IT is the contention of the petitioners, by Notification G. O. (P) No. 41/88/td dated 30th March, 1988, issued by the Kerala Government under section 10 of the Kerala General Sales Tax Act which came into force on 1st day of April, 1988, as S. R. O. No. 364/88 complete exemption in respect of tax payable under the Kerala General Sales Tax Act is granted in favour of the printing presses. Therefore, petitioner need not pay sales tax under the State Act.

(3.) THE petitioner is admittedly carrying on business in printing. He undertakes printing on various items such as marriage invitation letters, bill books and such other items, though this is denied in reply. It is also stated that the petitioner does not undertake buying and selling of any goods. THE petitioner's business, according to the respondent, is in the nature of works contract and therefore, goods are not purchased for resale or for manufacture for resale. THEre is also no transfer of property in goods involved in the execution of the specific type of works contract that the assessee undertakes. It is stated that the invitation cards or bill books printed on the basis of firm contract could not be sold to any other person. All that the assessee gets, according to the respondent, is the printing charge from the person who ordered the items for printing. Hence, it is stated that the petitioner is not entitled for concession of tax. THE Sales Tax Officer has power, according to the respondent, to verify, before issuing the C form book, whether the assessee is entitled to avail of the concessional rate. This, according to the counter, is the purpose of rule 11 of the Rules. THE registering authority has also power to issue certificate. If the registering authority has power to verify the use or misuse of the form already issued, he has the duty to verify whether or not the forms are misused once they are issued, is the submission. Since it is found that the petitioner's business is only a works contract, it is the respondents' case that the petitioner is not entitled for "c" form and accordingly "c" form has been denied to the petitioner.