LALITHA MURALIDHARAN Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) The petitioner in this writ petition runs a unit in the Madras Export Processing Zone, Tambaram, Chennai. The said unit is engaged in the manufacture of essential oils, natural extracts and products of sandalwood. As part of its business operations, the petitioner sources sandalwood from Marayoor in Kerala, where it participates in auctions conducted by the Forest Department of the State of Kerala and purchases sandalwood. The issue in the present writ petition is regarding the liability of the petitioner to pay tax under the Kerala Value Added Tax Act, hereinafter referred to as the 'KVAT Act', on the purchases of sandalwood. While the petitioner maintains that she is not liable to pay local tax on the sandalwood purchased by her at the auction, since the goods so purchased are taken by her directly to the unit in the Madras Export Processing Zone, it is the case of the respondents that the transaction of sale would attract tax under the KVAT Act since the sale was concluded in the State of Kerala. The brief facts that are necessary for a disposal of this case may now be noticed;

(2.) A statement has been filed on behalf of the 1st respondent wherein the respondent would maintain that the sales effected to the petitioner were concluded in the State of Kerala and hence, the petitioner is liable to pay tax under the KVAT Act on the sale value of the goods sold to her.

(3.) I have heard the learned Senior Counsel Sri Raju Joseph for the petitioner and the learned Government Pleader Sri Liju V Stephen for the respondents.