High Court of KeralaWP(C)/6859/2015disposed of

All Kerala Chemists And Druggist Association v. The Commissioner Of Sales Tax, Thiruvananthapuram

2015-06-02Honourable Mr. Justice A.Muhamed Mustaque4 pages

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT:

THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE TUESDAY, THE 2ND DAY OF JUNE 2015/12TH JYAISHTA, 1937 WP(C).No. 6859 of 2015 (F) -------------------------------------- PETITIONER(S):

---------------------- ALL KERALA CHEMISTS AND DRUGGIST ASSOCIATION (REGD.), KOLLAM DISTRICT UNIT, CHEMIST BHAVAN, M.C.NO.XXVI/517, CURSON ROAD, KOLLAM -13, REPRESENTED BY ITS SECRETARY. BY ADVS.SRI.T.B.THANKAPPAN SRI.T.T.HARIKUMAR SRI.ASHISH VIDYADHARAN RESPONDENT(S):

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1. THE COMMISSIONER OF SALES TAX, COMMERCIAL TAXES DEPARTMENT, KILLIPALAM, THIRUVANANTHAPURAM.

2. THE DEPUTY COMMISSIONER (INTELLIGENCE), COMMERCIAL TAXES DEPARTMENT, KILLIPALAM THIRUVANANTHAPURAM.

3. THE DRUGS CONTROLLER OF KERALA, DRUGS CONTROLLER OFFICE, THIRUVANANTHAPURAM.

4. THE MANAGING DIRECTOR KERALA STATE CO-OPERATIVE CONSUMERS FEDERATION LTD. GANDHI NAGAR, ERNAKULAM, KOCHI 20 KERALA.

5. MANAGING DIRECTOR, MEDICAL SERVICES CORPORATION, BEHIND WMC HOSPITAL, THYCAUD, THIRUVANANTHAPURAM - 695 064.

6. STATE OF KERALA REPRESENTED BY THE SPECIAL SECRETARY TO GOVT. TAXES DEPARTMENT, GOVT. SECRETARIAT, THIRUVANANTHAPURAM - 695001.

7. THE HEALTH SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695001.

R1-R3,6 & 7 BY GOVERNMENT PLEADER SMT.SOBHA ANNAMMA EAPEN R4 BY SRI.K.T.PAULOSE, SC R5 BY SRI.M.AJAY,SC, THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02-06-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ

WP(C).No. 6859 of 2015 (F) -------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- P1TRUE COPY OF THE NEWS PAPER REPORT IN DESHABBIMANI DATED 23.7.14 AS PER THE INVESTIGATION DONE BY 3RD AND 4TH RESPONDENT P2TRUE COPY OF THE NEWS PAPER REPORT IN KAUMUDI DATED 24.8.2014 ON THE BASE OF THE INSPECTION BY THE CONTROLLER AND AUDITOR GENERAL P3TRUE COPY OF THE LETTER DATED 12.1.2015 BY PETITIONER FORWARDED TO 2ND RESPONDENT P4TRUE COPY OF THE BILL ISSUED BY THE ASWAS COMMMUNITY PHARMACY AND HEALTH CARE CENTRE P5TRUE COPY OF THE WHOLE SALE BILL OF THE M/S.VANIYAPURACKAL DISTRIBUTORS DATED 16.1.2015 P6TRUE COPY OF THE WHOLE SALE BILL OF THE M/S.UNI DRUGS DATED 21.1.2015 P7TRUE COPY RETAIL BILL DATED 16.1.

2015 OF ASWAS COMMUNITY PHARMACY AND HEALTH CARE CENTRE, CHINNAKADA P8TRUE COPY OF WHOLE SALE OF BILL OF THE AFORESAID PRODUCTS OF VENAD AGENCIES CHINNAKADA DATED 16.1.2015 P9TRUE COPY OF THE PURCHASE DETAILS OF RETURN PERIOD APRIL OF ASWAS COMMUNITY PHARMACY DISTRIBUTORS P10TRUE COPY PURCHASE DETAILS OF RETURN PERIOD MAY OF ASWAS COMMUNITY PHARMACY DISTRIBUTORS P11TRUE COPY PURCHASE DETAILS OF RETURN PERIOD JULY OF ASWAS COMMUNITY PHARMACY DISTRIBUTORS P12TRUE COPY PURCHASE DETAILS OF RETURN PERIOD AUGUST OF ASWAS COMMUNITY PHARMACY DISTRIBUTORS P13TRUE OCPY PURCHASE DETAILS OF RETURN PERIOD SEPTEMBER OF ASWAS COMMUNITY PHARMACY DISTRIBUTORS P14TRUE COPY REPRESENTATION DATED 18.12.2014 FILED BY THE PETITIONER BEFORE 3RD RESPONDENT RESPONDENT(S)' EXHIBITS --------------------------------------- NIL.

/ TRUE COPY / P.S. TO JUDGE PJ

A. MUHAMED MUSTAQUE, J.

-------------------------------------------- W.P. (C). No. 6859 of 2015 ------------------------------------------- Dated this the 2nd day of June, 2015

J U D G M E N T

The petitioner is the Secretary of All Kerala Chemists and Druggist Association of Kollam District. The petitioner has filed this writ petition in the larger interest alleging unfair trade practice of medical retail outlets in the State who offer high discount to the customers, despite Drugs (price) Control Order 2013. The case of the petitioner is that, high discount on the sale price of the drugs is also causing huge lose to the Exchequer. Such retail outlets are functioning in the name of Aswas, Akshays and Viswas. In that context the petitioner seeks the following reliefs in this writ petition. "A. A writ in the nature of mandamus directing the respondents to conduct a comprehensive enquiry into the functioning of discount retail medical shops in the state and their sources of supply of medicines in bulk that cause big revenue loss to the state exchequer and posing big threat to legally functioning retail medical shops in the state;

B. Grant such other writs, orders or directions as this Hon'ble Court may deem fit and proper in the circumstances of the case."

The 1st respondent has filed a statement. In the statement it is stated that there is actually no revenue loss to the Government Exchequer since the compounded tax at MRP

W.P. (C). No. 6859 of 2015 has been remitted at the first phase of its distribution in the State. It is further stated that Aswas, Viswas, Sevana Medical Shops are functioning under the Societies constituted on the principles of Community Pharmacy. The main aim of the society is to provide relief to the public in a market where the price of medicines are so exorbitant beyond the reach of common man. In fact it appears that the State supports pursuing such activities by the society.

Essentially the claim of the petitioner appears to be complaining of unfair practices adopted by certain medical retailers. The monopolic tendency of such retailers indulging unfair practices are highlighted.

I am of the view that it is beyond the scope of Commissioner of Sales Tax, to probe. The Statute like Competition Act, 2002 has made a mechanism to deal with such issues. The petitioner has to work out such remedy either by availing the redressal mechanism of such Act or such other mechanism. No relief can be granted by this Court. This writ petition is disposed of, with liberty to the petitioner to avail any other alternate redressal mechanism .

Sd/- A. MUHAMED MUSTAQUE, JUDGE.