2006 (10) TMI 391 - HC - VAT and Sales Tax

Summary

Issues involved: Challenge to sales tax assessments on the sale of bullion to exporters for the years 1990-91 and 1991-92.

Summary:
The High Court of Kerala dismissed the tax revision cases filed by a bank challenging the sales tax assessments on the sale of bullion to exporters for the years 1990-91 and 1991-92. The petitioner contended that the disputed quantity, though delivered to exporters in the relevant year, was invoiced in the subsequent year after the fixation of price. The assessing officer estimated turnover for the full quantity delivered in the assessment year and assessed tax accordingly. The appellate authority directed the acceptance of actual sale figures accounted in the later year, which was confirmed by the Tribunal. The petitioner argued that the sale should be assessed in the succeeding year as the price was fixed later and invoice raised subsequently. However, the court held that the delivery of goods against substantial payment constituted a sale as defined under section 2(xxi) of the Kerala General Sales Tax Act, 1963. The court emphasized that the transaction is rightly assessed in the year of delivery under the terms of the contract. The court dismissed the tax revision petitions, upholding the sales tax assessments on the bullion sales to exporters.