COCHIN PORT TRUST Vs. STATE OF KERALA

JUDGEMENT

(1.) The question that arises for consideration in these cases is whether the Cochin Port Trust, governed by the Major Port Trusts Act, 1963, is a dealer under the Kerala General Sales Tax Act, 1963 and liable to pay sales tax.

(2.) S.T.R. No. 321 of 2005 and S. T. R. No. 326 of 2005 arise out of a common order passed in T. A. No. 1 of 2000 and T. A. No. 143 of 2003 of the Kerala Sales Tax Appellate Tribunal, Additional Bench-II, Ernakulam. T. A. No. 1 of 2000 and T. A. No. 143 of 2003 were disposed of along with T. A. No. 162 of 2000 filed by the State. State has not filed any revision petition against the order in T. A. No. 162 of 2000 and hence we need only examine the correctness or otherwise of the common order passed in T. A. No. 1 of 2000 and T. A. No. 143 of 2003. T. A. No. 1 of 2000 relates to the assessment year 1994-95 and T. A. No. 143 of 2003 relates to the assessment year 1997-98. T.R.C. No. 412 of 2002 was filed by the Cochin Port Trust against the order in T.A. No. 479 of 1998 relating to the assessment year 1990-91. In all these cases the main issue arising for consideration is the question posed by us.

(3.) The Cochin Port Trust is an assessee on the rolls of the Assistant Commissioner (Assessment), Commercial Taxes, Special Circle, Mattancherry. Assessment for the year 1994-95 was completed by the assessing authority vide proceedings dated March 31, 1999 fixing the taxable turnover of Rs. 2,02,58,33,660 as against the conceded taxable turnover of Rs. 1,65,36,244. The port trust challenged that order in appeal before the Deputy Commissioner (Appeals) Ernakulam contending that the port trust is not a "dealer" within the meaning of the KGST Act in view of the decision of the apex court in State of Tamil Nadu v. Board of Trustees of the Port of Madras, 1999 114 STC 520. A contention was also raised against the addition made to turnover under works contract and hire-charges and forfeiture of excess tax, etc. The appellate authority disposed of the appeal with certain directions to the assessing authority on the levy of tax on works contract and turnover of right to use and also confirming the forfeiture of tax made by the assessing authority and confirmed levy of tax at 15 per cent as sale of tug. The appellate authority rejected the plea of the port trust that it is not a dealer under the KGST Act. The assessee had also filed appeal against the finding of the assessing authority with regard to the assessment year 1997-98. Apart from the contention that the port trust is not a dealer, the levy of tax on the turnover to the tune of Rs. 61,95,79,834 as turnover under works contract was also questioned. Various other contentions were also raised. The Tribunal disposed of both T. A. No. 1 of 2000 and T. A. No. 143 of 2003 along with T. A. No. 162 of 2000 upholding various directions given by the appellate authority.