2002 (9) TMI 814 - HC - VAT and Sales Tax

Summary

Issues:
Assessment of turnover tax under section 5(2A) of the Kerala General Sales Tax Act, 1963 on the turnover of rubber claimed for exemption under Notification S.R.O. No. 716/88 based on rejected declarations.

Analysis:
The judgment pertains to the same assessee in three cases concerning the assessment years 1989-90, 1990-91, and 1991-92, who is a dealer in rubber subject to tax only at the last purchase point under section 5(1) of the Act. The main issue is whether the assessee is liable to pay turnover tax under section 5(2A) despite claiming exemption under Notification S.R.O. No. 716/88. The assessee submitted declarations as per the notification, but the assessing authority rejected some as defective/invalid, leading to confirmation by appellate authorities.

The counsel for the assessee argued that the rejected declarations were in compliance with form No. 25 and that the authorities should have allowed corrections or submission of fresh declarations. The Government Pleader contended that turnover tax is applicable at all sale points unless conditions in the notification are met. The Court referred to a previous case where compliance with declaration requirements was deemed mandatory to benefit from the notification.

The Court noted that the assessing authority did not provide the assessee with an opportunity to rectify defects in the declarations or submit fresh ones, despite the reason for rejection being the absence of tax payment details. Consequently, the Court set aside the orders and remanded the matter to the assessing authority for the assessee to cure defects or submit fresh declarations within a month. Failure to comply would confirm the assessment order.

In conclusion, the tax revision cases were allowed, and the matter was remanded solely for rectifying declaration defects or submission of fresh declarations. An order dismissing a related application was also mentioned in the judgment.