COMMERCIAL TAX OFFICER Vs. V.N. PAVITHRAN

JUDGEMENT

(1.) Revenue is before us aggrieved by the judgment of the learned Single Judge dated 07.04.2010 in WP(C) No.920 of 2007. The relevant provisions that have to be taken into consideration apart from relevant documents are Section 11 (2), 11(5) and Section 12(1)(b) read with first proviso of Kerala Value Added Tax Act, 2003. The relevant notification considered by the Department is Ext.P6, SRO No.324/2005. Sub-section (x) of Section (2) defines 'capital goods'.

(2.) The entire issue revolves round whether the respondent assessee is entitled for rebate so far as entry tax paid by him by virtue of above two sections and also the notification, SRO No.324/2005. The brief facts that lead to the filing of the writ petition are as under.

(3.) Admittedly the respondent dealer is conducting a quarry and crusher unit and for the said business of him, he purchased Hydraulic Excavator from Bangalore and brought it to Kerala. It is not in dispute that entry tax came to be paid as per Ext.P3. Initially when Form 25 claim made by the dealer in accordance with the procedure contemplated under Section 11 of the Act, such rebate was allowed as per Ext.P5 to him by the Department. Later, by virtue of orders at Ext.P1, after issuing show cause notice and hearing the explanation of the dealer, orders came to be passed by the Commercial Tax Officer withdrawing the benefit of rebate given under Ext.P5. Ext.P1 order became the subject matter of challenge before the learned Single Judge.