Kerala High Court
Hindustan Coca-Cola Beverages Pvt. Ltd vs State Of Kerala on 5 November, 2024
Author: K. Babu
Bench: K. Babu
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE K. BABU
TUESDAY, THE 5TH DAY OF NOVEMBER 2024 / 14TH KARTHIKA, 1946
WP(C) NO. 23009 OF 2021
PETITIONER:
M/S.HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.
REGD. OFFICE AT B-91, MAYAPURI INDUSTRIAL AREA,
PHASE -1, NEW DELHI -110 064 AND OFFICE IN KERALA
AT NEAR CENTRAL WARE HOUSING CORPORATION
POOKKATUPADY ROAD, EDATHALA PANCHAYATH,
ERNAKULAM - 683 561, REP.BY ITS AUTHORISED
SIGNATORY MR.SANISH JOHN.
BY ADVS.SRI.A.KUMAR (SR.)
P.J.ANILKUMAR
G.MINI(1748)
P.S.SREE PRASAD
JOB ABRAHAM
AJAY V.ANAND
RESPONDENTS:
1 STATE OF KERALA
REP.BY SECRETARY, TAXES (B) DEPARTMENT,
TRIVANDRUM 695 001.
2 STATE LEVEL COMMITTEE ON SALES TAX EXEMPTION
THIRUVANANTHAPURAM 695 001,
REP.BY ITS CHAIRMAN.
3 DIRECTOR OF INDUSTRIES AND COMMERCE
VIKAS BHAVAN, TRIVANDRUM, KERALA 695 033.
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W.P.(C)No.23009 of 2021 2
4 GENERAL MANAGER
DISTRICT INDUSTRIES CENTRE,
PALAKKAD 679 001.
5 DEPUTY COMMISSIONER (GENERAL)
DEPARTMENT OF COMMERCIAL TAXES,
TRIVANDRUM 695 001.
6 ASST. COMMISSIONER (ASSESSMENT)
SPECIAL CIRCLE-II, TRIVANDRUM 695 001.
7 DEPUTY TAHSILDAR (R.R.)
TRIVANDRUM 695 001.
BY SPL. GP TAXES SRI.MOHAMMED RAFIQ,
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
05.11.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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W.P.(C)No.23009 of 2021 3
JUDGMENT
The prayers in this writ petition are as follows:-
"A. Issue a writ declaring that the petitioner is entitled to
an Eligibility Certificate for Sales Tax Exemption under
Exhibit P4 application for its industrial unit to the tune of
Rs.28,92,12,889/-.
B. Issue a Writ of Mandamus or such other appropriate writ,
order or direction setting aside Exhibit P49 order issued by
the 2nd respondent in so far as it restricts the quantum of
eligibility on plant and machinery to the tune of Rs.1.56
Crores and direct the 3rd respondent to issue eligibility
certificate to the tune of Rs.28,92,12,889/- for investment
in plant and machinery and land and building.
C. Issue a writ of mandamus or such other appropriate writ,
order or direction directing the 5th respondent to allow
sales tax exemption under SRO 1729/1993 and 1092/1999
and grant exemption accordingly to the tune of
Rs.28,92,12,889/-.
D. Pass such other appropriate writ, order or direction as this
Hon'ble Court may deem just and fit in the circumstances of
the case."
2. The petitioner is a private limited company incorporated
under the Companies Act, having its registered office at New Delhi and
engaged in the manufacture of sweetened aerated water and juices
under the brand name Coca-Cola, Sprite, Limca, Maaza etc.
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3. The State of Kerala has been announcing tax concession
for the industrial sector by way of sales tax exemption. A consolidated
notification as SRO.1729/1993 was issued by the State incorporating all
tax concessions wherein provision was made for exemption for a period
of seven years from the date of commencement of commercial
production to new industrial units in respect of tax payable under the
KGST Act. New industrial units under the category of medium and
large scale industries were entitled to exemption in respect of sales tax,
purchase tax, surcharge and Central sales tax up to 100% of fixed
capital investment under clause 10(iii) of the notification.
4. The petitioner Company set up a new unit and
commenced commercial production in March, 2000 at Moolathara
Village, Chittoor Taluk, Palakkad District. The company purchased and
developed land measuring 35 acres, purchased plant and machinery
and commenced commercial production on 13.3.2000 and effected the
first sale of goods manufactured in the unit on 29.3.2000.
5. The petitioner applied for grant of exemption as provided
in SRO.No.1729/1993 which was modified by SRO Nos.1092/1999 and
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295/2000, in Form-I vide application dated 18.8.2000. Pursuant to the
application, the General Manager, District Industries Centre (GM-DIC),
Palakkad (R4) after physical verification of the unit recorded satisfaction
and reported to the Director of Industries and Commerce,
Thiruvananthapuram.
6. The application submitted by the petitioner along with
the recommendation of the GM-DIC was placed before the State Level
Committee (SLC) for issuance of Eligibility Certificate. The SLC refused
issuance of Eligibility Certificate as per Ext.P6 proceedings inter alia
holding that the 'effective steps' as envisaged in SRO No.1092/1999
and SRO No.295/2000 have not been complied with.
7. The petitioner challenged Ext.P6 proceedings by filing
O.P.No.34257 of 2001 before the High Court. This Court quashed
Ext.P6 directing reconsideration of the matter afresh. Thereafter, the
petitioner made a written representation to respondent No.3 placing the
relevant documents as per communication dated 7.12.2012. As per
Ext.P13 proceedings dated 11.3.2013 the Director of Industries and
Commerce, Thiruvananthapuram passed orders to issue Eligibility
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Certificate to the tune of Rs.5,26,08,733/-.
8. The petitioner again challenged Ext.P13 proceedings by
filing W.P.(C)No.11427 of 2013 before this Court. This Court allowed
the writ petition directing the State Level Committee to reconsider the
matter afresh within four months from the date of receipt of a copy of
the judgment as per Ext.P26 judgment dated 26.3.2014. After Ext.P26
judgment, on 9.5.2014, the petitioner made a request for issuance of
the Eligibility Certificate for sales tax exemption. Thereafter, after a
series of proceedings at the lower level the matter reached the State
Level Committee. The Committee disposed the representation of the
petitioner accepting the recommendation of the Director of Industries
and Commerce restricting the quantum of eligibility of plant and
machinery to the tune of Rs.1.56 Crores as per Ext.P49 order. This
order is under challenge in this writ petition.
9. I have heard the learned Senior Counsel Sri.A.Kumar
and the learned Special Government Pleader (Taxes) Sri.Mohammed
Rafiq.
10. The learned Senior Counsel appearing for the petitioner
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submitted that Ext.P49 order is passed in violation of the principles of
natural justice without considering the materials on record and in an
arbitrary manner. The learned Senior Counsel submitted that the
denial of sales tax exemption claimed by restricting the quantum of
exemption to Rs.1.56 Crores is done in an arbitrary manner. The
learned Senior Counsel further submitted that when the petitioner
produced evidence for fixed capital investment at Rs.28,92,12,889/-
consisting of purchase order, invoices and proof of payment, there is
absolutely no basis for non-consideration of fixed capital investment as
pleaded by the petitioner.
11. The learned Special Government Pleader (Taxes)
submitted that based on the representation dated 9.9.2024 submitted
by the petitioner the State Level Committee for Sales Tax Exemption
convened on 27.9.2024 has decided to direct the petitioner company to
produce the proof of payments and other relevant documents before
the Director of Industries and Commerce for detailed verification and
for issuing Eligibility Certificate after examining the eligibility of the
same. The learned Special Government Pleader filed a statement on
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behalf of respondent No.1 along with the proceedings dated 27.9.2024
of the State Level Committee. The relevant portion of the statement
reads thus:-
"It is submitted that, based on the representation dated
09.09.2024 of M/s.Hindustan Coca-Cola Beverages Pvt.
Ltd., State Level Committee for Sales Tax Exemption
convened on 27.09.2024 has decided to direct
M/s.Hindustan Coca-cola Beverages Pvt. Ltd. to produce
the proof of payments and other relevant documents
before the Director, Industries and Commerce for detailed
verification and for issuing eligibility certificate after
examining the eligibility of the same. The Director of
Industries and Commerce shall forward the eligibility
certificate to the Commissioner of State (sic., Sales) Tax
for further processing as per the procedures laid down in
the related notification SRO 1729/93. Further action
pursuant to the decision of the State Level Committee
met on 27.09.2024 has to be taken by the Director of
Industries and Commerce and the Commissioner of State
(sic., Sales) Tax and the same is yet to be taken."
12. Having regard to the submissions on both sides and in
view of the fact that the State Level Committee has taken a decision to
direct the competent authority to conduct a detailed verification of the
relevant documents, this Court is of the view that the petitioner is to be
given a further opportunity to produce all relevant documents to
establish its case. It is made clear that the petitioner is not required to
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give any further proof to establish the quantum of eligibility of Rs.1.56
Crores already accepted.
13. Exhibit P49 proceedings are hereby quashed. The
petitioner is at liberty to furnish materials in support of the rest of its
claims before the Director of Industries and Commerce on or before
14.11.2024. The competent authority in the Government shall finalise
the entire proceedings as expeditiously as possible, at any rate, on or
before 30.11.2024. The interim order already passed by this Court
intercepting the recovery proceedings will continue till such time.
The writ petition is allowed to the above extent.
Sd/-
K.BABU
Judge
TKS
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APPENDIX OF WP(C) 23009/2021
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE SRO 1729/1993
Exhibit P2 TRUE COPY OF THE SRO NO.1092/99 DATED 31/12/1999
Exhibit P3 TRUE COPY OF THE SRO NO.295/2000 DATED 31.3.2000
Exhibit P4 TRUE COPY OF THE APPLICATION (WITHOUT ANNEXURE)
Exhibit P5 TRUE COPY OF THE COMMUNICATION DATED 13/6/2001
Exhibit P6 TRUE COPY OF THE ORDER DATED 22.10.2001 OF THE
2ND RESPONDENT REJECTING THE ELIGIBILITY
CERTIFICATE.
Exhibit P7 TRUE COPY OF THE JUDGMENT IN O.P.NO.34257/2001
DATED 15.12.2011
Exhibit P8 TRUE COPY OF THE REPRESENTATION DATED 7.12.2012
Exhibit P9 A TRUE COPY OF THE LETTER DATED 6.2.2013
Exhibit P10 A TRUE COPY OF THE LETTER DATED 7.3.2013
Exhibit P11 A TRUE COPY OF THE LETTER DATED 11.3.2013
Exhibit P12 A TRUE COPY OF THE LETTER DATED 15.3.2013
Exhibit P13 A TRUE COPY OF THE LETTER DATED 11.3.2013 PASSED
BY THE 3RD RESPONDENT
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Exhibit P14 TRUE COPY OF THE COUNTER AFFIDAVIT IN
Exhibit P15 A TRUE COPY OF THE LETTER DATED 8.12.2000 OF THE
4TH RESPONDENT
Exhibit P16 TRUE COPY OF THE COMMUNICATION DATED 18.1.2001
OF THE 3RD RESPONDENT TO THE 4TH RESPONDENT
Exhibit P17 TRUE COPY OF THE LETTER DATED 12.2.2001 OF THE
4TH RESPONDENT TO THE 3RD RESPONDENT
Exhibit P18 TRUE COPY OF THE COMMUNICATION DATED 14.3.2001
OF THE 3RD RESPONDENT TO THE 4TH RESPONDENT
Exhibit P19 TRUE COPY OF THE LETTER DATED 3.5.2001 OF THE
4TH RESPONDENT TO THE 3RD RESPONDENT
Exhibit P20 TRUE COPY OF THE COMMUNICATION DATED 22.6.2001
OF THE 3RD RESPONDENT TO THE 4TH RESPONDENT
Exhibit P21 TRUE COPY OF THE LETTER DATED 23.6.2001 OF THE
4TH RESPONDENT TO THE 3RD RESPONDENT
Exhibit P22 TRUE COPY OF THE WRIT PETITION NO.11427/2013
WITHOUT ANNEXURES
Exhibit P23 TRUE COPY OF THE COUNTER IN WRIT PETITION
NO.11427/2013 DATED 24.12.2013
Exhibit P24 TRUE COPY OF THE REPLY OF PETITIONER WRIT
PETITION NO.11427/2013 DATED 7/1/2014
Exhibit P25 TRUE COPY OF THE PETITION TO ACCEPT ADDITIONAL
DOCUMENTS DATED 26/9/2013
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Exhibit P26 TRUE COPY OF THE JUDGMENT IN WRIT PETITION (C)
NO.11427 OF 2013 DATED 26/3/2014
Exhibit P27 TRUE COPY OF THE COMMUNICATION DATED 9/5/2014
Exhibit P28 TRUE COPY OF THE COMMUNICATION DATED 30/7/2014
Exhibit P29 TRUE COPY OF THE COMMUNICATION DATED 20/8/2014
Exhibit P30 TRUE COPY OF THE COMMUNICATION DATED 27/8/2014
Exhibit P31 TRUE COPY OF THE COMMUNICATION DATED 5/9/2014
Exhibit P32 TRUE COPY OF THE COMMUNICATION DATED 18/9/2014
Exhibit P33 TRUE COPY OF THE COMMUNICATION DATED 19/9/2014
Exhibit P34 TRUE COPY OF THE COMMUNICATION DATED 20/9/2014
Exhibit P35 TRUE COPY OF THE COMMUNICATION DATED 18/10/2014
Exhibit P36 TRUE COPY OF THE COMMUNICATION DATED 21/11/2014
Exhibit P37 TRUE COPY OF THE COMMUNICATION DATED 20/1/2015
Exhibit P38 TRUE COPY OF THE COMMUNICATION DATED 14/5/2015
Exhibit P39 TRUE COPY OF THE COMMUNICATION DATED 2/5/2015
Exhibit P40 TRUE COPY OF THE COMMUNICATION DATED 30/5/2015
Exhibit P41 TRUE COPY OF THE COMMUNICATION DATED 18/6/2015
Exhibit P42 TRUE COPY OF THE COMMUNICATION DATED 7/7/2015
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Exhibit P43 TRUE COPY OF THE COMMUNICATION DATED 30/7/2015
Exhibit P44 TRUE COPY OF THE COMMUNICATION DATED 21/8/2-15
Exhibit P45 TRUE COPY OF THE COMMUNICATION DATED 4/1/2016
Exhibit P46 TRUE COPY OF THE COMMUNICATION DATED 14/1/2016
Exhibit P47 TRUE COPY OF THE COMMUNICATION DATED 20/1/2016
Exhibit P48 TRUE COPY OF THE COMMUNICATION DATED 7/10/2016
Exhibit P49 TRUE COPY OF THE ORDER DATED 24/3/2021
Exhibit P50 TRUE COPY OF THE COVERING LETTER DATED 26/4/2001
Exhibit P51 TRUE COPY OF THE ASSESSMENT ORDER UNDER KGST ACT
FOR THE ASSESSMENT YEAR 1999-2000 DATED
30/3/2004
Exhibit P52 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2000-2001 DATED
26/11/2004
Exhibit P53 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2001-2002 DATED
29/8/2006
Exhibit P54 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2000-2001 DATED
Exhibit P55 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2003-2004 DATED
14/9/2009
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Exhibit P56 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2000-2001 DATED
26/11/2049
Exhibit P57 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2001-2002 DATED
30/8/2005
Exhibit P58 TRUE COPY OF THE ASSESSMENT ORDERS UNDER THE
KGST ACT FOR THE ASSESSMENT YEAR 2002-2003 DATED
9/11/2006
Exhibit P59 TRUE COPY OF THE COMMUNICATION DATED 17.5.2021
RESPONDENTS' ANNEXURES
Annexure True copy of the Minutes of State Level
R1(a) Committee for Sales Tax exemption held on 27-09-
2024 at thiruvananthapuram
TKS
