2013 (7) TMI 269 - HC - VAT and Sales Tax

Transit pass indicating the price shown in the invoice issued by the dealer - KVAT Act - Held that - So long as, the floor rate fixed under Section 47(16A) of the KVAT Act remains in force, the respondents cannot be directed to issue transit pass indicating the invoice value as sought for by the petitioner. Therefore, the respondents are directed to issue transit passes to the petitioner subject to the eligibility, only in accordance with law and in the light of the findings herein before.

Summary

Issues:
1. Interpretation of delivery notes requirements under the Pudussery Tax Authorities.
2. Discrepancy in value shown on delivery notes and invoice for live chicken transportation.
3. Request for transit pass issuance based on invoice value.

Analysis:
1. The petitioner, a dealer in live chicken, raised a concern regarding the delivery notes prescribed by the Pudussery Tax Authorities, specifically Form JJ, where the Kerala Commercial Taxes Department was insisting on showing the value of live chicken transported as the floor value fixed by the Commissioner under Section 47(16A) of the KVAT Act. The petitioner argued that this practice led to prejudice as the assessing authorities used the delivery note value for assessment, even if it was higher than the actual invoice value.

2. The Government Pleader clarified that the Kerala Tax Authorities do not require dealers transporting taxable goods, like live chicken, through the state to indicate the value on the delivery notes at the prescribed rate by the Commissioner. This statement indicated that there was no insistence on matching the delivery note value with the floor value fixed by the Commissioner for assessment purposes. Therefore, the petitioner's grievance on this issue was addressed, and there was no further redress needed.

3. The petitioner also sought a direction for the respondents to issue transit passes reflecting the price shown on the dealer's invoice. However, the court noted that as long as the 'floor rate' determined under Section 47(16A) of the KVAT Act was applicable, the authorities could not be compelled to issue transit passes based on the invoice value. The judgment directed the respondents to issue transit passes to the petitioner in compliance with the law and the court's findings, thereby disposing of the writ petition accordingly.