PR. COMMISSIONER OF INCOME TAX vs. M/S RAJASTHAN FINANCIAL CORPORATION

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