SDF INDUSTRIES LTD vs. STATE OF KERALA
What did the High Court hold?
The High Court noted that in separate proceedings (OT Revision No.120 of 2020 and connected cases), it had dismissed the revision petitions filed by the State, upholding the Tribunal's finding that the assessments against the petitioner for the assessment years 2005-06 to 2009-10 were barred by limitation. Consequently, the High Court held that the present revision petitions filed by the assessee would have to be allowed on the ground of limitation. The Court stated that it would not pronounce on the merits of the submissions regarding the taxability of demineralised water supplied by the assessee, as doing so for the assessment years 2005-06 to 2009-10 would be an academic exercise given the finding of limitation and the dismissal of the revenue's appeals on that ground. The petitions were thus closed without deciding the aspect of taxability of demineralised water, which pertains to subsequent assessment years.
What were the facts?
The assessee, M/s. SDF Industries Ltd., filed these Other Tax Revision (VAT) Petitions challenging orders of the Kerala Value Added Tax/Agrl. Income Tax and Sales Tax Appellate Tribunal. The Tribunal had ruled against the assessee on the issue of whether demineralised water supplied during job works for IMFL manufacturers constituted a sale. However, for assessment years 2005-06 to 2009-10, the Tribunal found in favour of the assessee on the issue of limitation, holding that assessments for these years were barred. The assessee's petitions were filed in light of separate revision petitions filed by the revenue challenging the Tribunal's findings on limitation. These petitions were heard along with other connected cases.
What were the issues?
1. Whether the Tribunal erred in holding that the sale of demineralised water by the assessee during job work for IMFL manufacturers constituted a sale, thereby attracting tax liability? (Question of law) 2. Whether the assessments for the assessment years 2005-06 to 2009-10 were barred by limitation? (Question of mixed law and fact) Assessee's Contentions: The assessee's revision petitions were filed in response to the revenue's appeals against the Tribunal's order on limitation. The assessee implicitly relied on the Tribunal's finding that the assessments for the years 2005-06 to 2009-10 were barred by limitation. Revenue's Contentions: The revenue had filed revision petitions challenging the Tribunal's finding that the assessments for the years 2005-06 to 2009-10 were barred by limitation. The judgment does not record specific arguments from the revenue regarding the taxability of demineralised water in these specific petitions.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 OT.REV NO. 67 OF 2021 (AGAINST THE ORDER DATED 31.10.2019 IN TA(VAT) NO.431 OF 2018 OF THE KERALA VALUE ADDED TAX/AGRL. INCOME TAX AND SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH,KOZHIKODE) REVISION PETITIONER/APPELLANT/APPELLANT/ASSESSEE: M/S.SDF INDUSTRIES LTD CHANDRANAGAR, PALAKKAD, REPRESENTED BY SUNNY MATHEW, SENIOR LAISON ASSISTANT. BY ADV SMT.MEERA V.MENON RESPONDENT/RESPONDENT/REVENUE: STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVT. SECRETARIAT, THIRUVANANTHAPURAM 695001. BY SENIOR GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS OTHER TAX REVISION (VAT) HAVING COME UP FOR ADMISSION ON 05.08.2024, ALONG WITH OT.REV NO. 57 OF 2021 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 2 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 OT.REV NO. 57 OF 2021 (AGAINST THE ORDER DATED 31.10.2019 IN TA(VAT) NO.428 OF 2018 OF THE KERALA VALUE ADDED TAX/AGRL. INCOME TAX AND SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH,KOZHIKODE) REVISION PETITIONER/APPELLANT/APPELLANT/ASSESSEE: M/S.SDF INDUSTRIES LTD., CHANDRANAGAR, PALAKKAD, REPRESENTED BY SUNNY MATHEW, SENIOR LAISON ASSISTANT. BY ADVS. SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT/RESPONDENT/REVENUE: STATE OF KERALA, REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001. BY SENIOR GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS OTHER TAX REVISION (VAT) HAVING COME UP FOR ADMISSION ON 05.08.2024, ALONG WITH OT.REV NO. 67 OF 2021 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 3 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 OT.REV NO. 66 OF 2021 (AGAINST THE ORDER DATED 31.10.2019 IN TA(VAT) NO.432 OF 2018 OF THE KERALA VALUE ADDED TAX/AGRL. INCOME TAX AND SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH,KOZHIKODE) REVISION PETITIONER/APPELLANT/APPELLANT/ASSESSEE: M/S.SDF INDUSTRIES LTD CHANDRANAGAR, PALAKKAD, REPRESENTED BY SUNNY MATHEW, SENIOR LAISON ASSISTANT. BY ADV SMT.MEERA V.MENON RESPONDENT/RESPONDENT/REVENUE: STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVT. SECRETARIAT, THIRUVANANTHAPURAM. BY SENIOR GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS OTHER TAX REVISION (VAT) HAVING COME UP FOR ADMISSION ON 05.08.2024, ALONG WITH OT.REV NO. 67 OF 2021 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 4 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 OT.REV NO. 65 OF 2021 (AGAINST THE ORDER DATED 31.10.2019 IN TA(VAT) NO.430 OF 2018 OF THE KERALA VALUE ADDED TAX/AGRL. INCOME TAX AND SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH,KOZHIKODE) REVISION PETITIONER/APPELLANT/APPELLANT/ASSESSEE: M/S.SDF INDUSTRIES LTD CHANDRANAGAR, PALAKKAD, REPRESENTED BY SUNNY MATHEW, SENIOR LAISON ASSISTANT. BY ADV SMT.MEERA V.MENON RESPONDENT/RESPONDENT/REVENUE: STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001. BY SENIOR GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS OTHER TAX REVISION (VAT) HAVING COME UP FOR ADMISSION ON 05.08.2024, ALONG WITH OT.REV NO. 67 OF 2021 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 5 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 5TH DAY OF AUGUST 2024 / 14TH SRAVANA, 1946 OT.REV NO. 73 OF 2021 (AGAINST THE ORDER DATED 31.10.2019 IN TA(VAT) NO.429 OF 2018 OF THE KERALA VALUE ADDED TAX/AGRL. INCOME TAX AND SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH,KOZHIKODE) REVISION PETITIONER/APPELLANT/APPELLANT/ASSESSEE: M/S.SDF INDUSTRIES LTD. CHANDRANAGAR, PALAKKAD, REPRESENTED BY SUNNY MATHEW, SENIOR LAISON ASSISTANT. BY ADV MEERA V.MENON RESPONDENT/RESPONDENT/REVENUE: STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, GOVT. SECRETARIAT, THIRUVANANTHAPURAM 695001. BY SENIOR GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS OTHER TAX REVISION (VAT) HAVING COME UP FOR ADMISSION ON 05.08.2024, ALONG WITH OT.REV NO. 67 OF 2021 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 6 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 O R D E R
Dr. A.K.Jayasankaran Nambiar, J. In all these OT. Revision Petitions, the Tribunal by the order impugned in these Revision Petitions has found against the petitioner assessee on the merits of the issue as regards whether or not there was a sale effected by the assessee of demineralised water while undertaking job works on behalf of companies engaged in the distribution of Indian Made Foreign Liquor (IMFL). For the assessment years 2005-06 to 2009-10 the Tribunal had also found against the revenue on the issue of limitation by holding that for the said assessment years the assessment against the petitioner herein was barred by limitation. 2. The above OT. Revision Petitions preferred by the assessee appear to have been filed taking note of Revision Petitions filed by the revenue against that part of the common order of the Tribunal that found the assessments against the petitioner for the years 2005-06 to 2009-10 to be barred by limitation. By a separate order dated 02.08.2024 in OT Revision No.120 of 2020 and connected cases we had dismissed the Revision Petitions filed by the State against the common order of the Tribunal, and upheld the findings of the Tribunal that the assessments against the petitioner for those years were barred by
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 7 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 limitation. The natural fall out of the said order passed by us in the Revision Petitions filed by the State would be that these OT. Revision Petitions filed by the assessee would have to be allowed on the ground of limitation, without pronouncing on the merits of the submissions regarding taxability of demineralised water supplied by them to the third-party companies on whose behalf they were manufacturing IMFL. Thus, these OT. Revision Petitions are closed without deciding the aspect of taxability of demineralised water which arises in relation to the assessee in the subsequent assessment years. These OT Revision Petitions are thus closed by refusing to answer the questions raised on merits since the same would be a mere academic exercise for the assessment years 2005-06 to 2009-10 in view of the finding that the assessments done on the petitioner for those years was barred by limitation, as also the dismissal of the Revision Petitions filed by the revenue for these years. Sd/-
DR. A.K.JAYASANKARAN NAMBIAR JUDGE Sd/- SYAM KUMAR V.M. JUDGE mns
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 8 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 APPENDIX OF OT.REV 67/2021 PETITIONER ANNEXURES ANNEXURE A COPY OF ASSESSMENT ORDER ISSUED BY THE COMMERCIAL TAX OFFICER, O/O. THE ASST.COMMISSIONER (ASSESSMENT), PALAKKAD DATED 30.11.2015. ANNEXURE B COPY OF ORDER ISSUED BY THE DEPUTY COMMISSIONER (APPEALS), PALAKKAD DATED 22.02.2017. ANNEXURE C COPY OF ORDER ISSUED BY THE KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ADDL. BENCH, KOZHIKODE DATED 31.10.2019.
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 9 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 APPENDIX OF OT.REV 57/2021 PETITIONER ANNEXURES ANNEXURE A COPY OF ASSESSMENT ORDER ISSUED BY THE COMMERCIAL TAX
OFFICER,
O/O.
THE
ASST. COMMISSIONER(ASSESSMENT),
PALAKKAD
DATED 30.11.2015. ANNEXURE B COPY OF ORDER ISSUED BY THE DEPUTY COMMISSIONER (APPEALS) PALAKKAD DATED 22.02.2017. ANNEXURE C COPY OF ORDER ISSUED BY THE KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ADDL. BENCH, KOZHIKODE DATED 31.10.2019.
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 10 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 APPENDIX OF OT.REV 66/2021 PETITIONER ANNEXURES ANNEXURE A COPY OF AGREEMENT ENTERED INTO THE PETITIONER WITH M/S.SHASHI
DISTILLERIES,
BANGALORE
DATED 20.3.2009. ANNEXURE B COPY OF ASSESSMENT ORDER ISSUED BY THE COMMERCIAL TAX OFFICER, O/O. THE ASST. COMMISSIONER (ASSESSMENT), PALAKKAD DATED 30.11.2015. ANNEXURE C COPY OF ORDER ISSUED BY THE DEPUTY COMMISSIONER (APPEALS), PALAKKAD DATED 22.2.2017. ANNEXURE D COPY OF ORDER ISSUED BY THE KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ADDL. BENCH, KOZHIKODE DATED 31.10.2019.
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 11 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 APPENDIX OF OT.REV 65/2021 PETITIONER ANNEXURES ANNEXURE A COPY OF ASSESSMENT ORDER ISSUED BY THE COMMERCIAL TAX
OFFICER,
O/O.
THE
ASST. COMMISSIONER(ASSESSMENT),
PALAKKAD
DATED 30.11.2015 ANNEXURE B COPY OF ORDER ISSUED BY THE DEPUTY COMMISSIONER (APPEALS), PALAKKAD 22.02.2017. ANNEXURE C COPY OF ORDER ISSUED BY THE KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ADDL. BENCH, KOZHIKODE 31.10.2019.
OT.Rev. No.67 of 2021 OT.Rev. No.57 of 2021 OT.Rev. No.66 of 2021 : 12 : OT.Rev. No.65 of 2021 & OT.Rev. No.73 of 2021 APPENDIX OF OT.REV 73/2021 PETITIONER ANNEXURES Annexure A1 COPY OF AGREEMENT ENTERED INTO THE PETITIONER WITH M/S. K.S DISTILLERY, KANNUR DATED 11.03.2006. Annexure A2 COPY OF AGREEMENT ENTERED INTO THE PEITIONER WITH M/S JOHN DISTILLERIES LTD. BANGALORE DATED 17.05.2006 Annexure B COPY OF ASSESSMENT ORDER ISSUED BY THE COMMERCIAL TAX OFFICER, O/O. THE ASST, COMMISSIONER (ASSESSMENT), PALAKKAD DATED 30.11.2015 Annexure C COPY OF ORDER ISSUED BY THE DEPUTY COMMISSIONER (APPEALS),PALAKKAD DATED 22.02.2017 Annexure D COPY OF ORDER ISSUED BY THE KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ADDL.BENCH, KOZHIKODE 31.10.2019
Recent GST High Court judgments
Search GST case law →- Aashutosh vs. The State Of Madhy PradeshMadhya Pradesh · 23 Oct 2026
- M/S Barnala Steel Industries Private Limited vs. State Of Uttar Pradesh And 2 OthersAllahabad · 22 Oct 2026
- Skd Suppliers Private Limited vs. The Superintendent, Central CGST, Rishra Division, Range-Ii, And AnrCalcutta · 22 Oct 2026
- M/S Aasha Industries vs. State Of U.P. And AnotherAllahabad · 22 Oct 2026
- M/S Bharat Iron Scrap vs. State Of U.P. And AnotherAllahabad · 22 Oct 2026
