2017 (7) TMI 972 - HC - VAT and Sales Tax

Exemption on stock transfer - it is alleged that the assessee did not produce any documents to discharge its burden as contained in Section 6A of the Central Sales Tax Act - Held that - it is the specific case of the assessee that it has traced out documents which would satisfy the requirements of Section 6A. Photocopies of these documents have also been produced before this Court as Annexure-A6 - the assessee claims that it has traced out the documents which would substantiate its claim for exemption and as the claim for exemption on sales return is already remitted to the assessing officer, we are inclined to think that ends of justice require that the assessee should be given a fresh opportunity to produce Annexure-A6 documents before the assessing officer and that the assessing officer should examine those documents and reconsider the claim of the assessee on merits - appeal allowed by way of remand.

Summary

Issues:
1. Assessment based on best judgment due to lack of supporting documents for exemption claims.
2. Tribunal's decision to deny exemption on stock transfer.
3. Assessee's claim of having traced out documents to support exemption on stock transfer.
4. Court's decision to remit the matter to the assessing officer for reevaluation based on newly produced documents.

Analysis:
The case involves a revision filed by the assessee against an order passed by the Kerala Value Added Tax Appellate Tribunal. The petitioner had filed its annual return for the assessment year 2009-10, disclosing total and taxable turnover. The assessing officer, due to lack of supporting documents for exemption claims related to sales return and interstate stock transfer, resorted to best judgment assessment and issued a notice to the assessee. The assessee then produced Form-F declaration and books of accounts, which were rejected, leading to the assessment being completed with tax and interest levied. The first appellate authority confirmed this assessment, which was challenged before the Tribunal.

The Tribunal's order disposed of the appeal by ordering a reconsideration of the claim for exemption on sales return by the assessing officer. However, the claim for exemption on stock transfer was denied by the Tribunal, which was the subject of the revision before the High Court. The Court noted that while the Tribunal's decision regarding the stock transfer exemption claim was based on the lack of documents to discharge the burden under Section 6A of the Central Sales Tax Act, the assessee claimed to have traced out documents supporting the exemption. Photocopies of these documents were submitted to the Court.

Given the new evidence presented by the assessee and the pending reconsideration of the sales return exemption claim, the Court decided to set aside the Tribunal's order denying the stock transfer exemption claim. The matter was remitted to the assessing officer for the assessee to produce the original Annexure-A6 documents within four weeks. The assessing officer was directed to examine these documents and reconsider both the claims for exemption on stock transfer and sales return. The Court concluded the revision with these directions, allowing the assessee a fresh opportunity to substantiate its claims with the newly produced documents.