HOTEL ALAKANANDA Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Whether Section 7(b) of the Kerala General Sales Tax Act, 1963 (for short KGST Act), introduced on 24-10-2006 with retrospective effect from 1-7-2006, could be applied to those dealers who had contracted for payment of turnover tax at the compounded rate (by way of the alternate method of taxation provided for), under the unamended Section 7 of the 1963 Act for the assessment year 2006-07? Whether Section 7(a) and 7(b) of the 1963 Act operate in different spheres and if not, would the said amended provision violate Article 14 and Article 19(1) (g) of the Constitution of India as contended in the writ petition? These are the two questions framed by the Apex Court, while disposing of Civil Appeal No. 2936 of 2009 [arising from SLP (C) 19982 of 2007] and connected matters as per the order dated 23-4-2009, while setting aside the verdict dated 28-9-2007 passed by a Division Bench of this Court, for fresh consideration in accordance with law.

(2.) W.A. No. 1865 of 2007 [arising from W.P (C) No. 8711 of 2007] is treated as the lead case. Mr. Sudhi Vasudevan, the learned Sr. Counsel led the arguments on behalf of the appellants/writ petitioners, supported by other learned lawyers appearing for the other appellants/writ petitioners. The arguments on behalf of the State/Department were putforth by Mr. Govindan, the learned Spl. Government Pleader (Taxes).

(3.) The pleadings and proceedings are referred to as given in W.A. No. 1865 of 2007, except where it is separately dealt with, based on the context. At the very outset, it is to be noted that there is not much controversy on the facts. The issue involves pure legal questions, particularly with regard to the scope of Section 7(b) of the Act, which was introduced by the Kerala Finance Act, 2006 (Act 22 of 2006) incorporating an amendment to the existing provision on 24-10-2006, retrospectively w.e.f. 1-7-2006 (the date on which the Bill was introduced in the Legislature).