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TMI Blog1993 (11) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... lf per cent on the turnover of goods coming under the First or Fifth Schedule to the Act. Tax is levied on all dealers whose turnover exceeded rupees twenty-five lakhs in a year. It is payable by all dealers. It is subjected to annual amendments and exemptions or reductions promulgated in the notification issued under section 10 of the Act. The relevant notifications dealing with exemption in respect of turnover tax payable under section 5(2A) of the Act are S.R.O. Nos. 715, 716 and 717 of 1988 which were relied on by the assessees in support of their pleas. S.R.O. Nos. 715 and 716 of 1988 dealt with turnover of rubber and S.R.O. No. 717 of 1988 dealt with the turnover relating to pepper, arecanut, ginger, etc. S.R.O. No. 715 of 1988 came into force from July 1, 1987 and was valid till February 18, 1988. S.R.O. No. 716 of 1988 came into force on February 19, 1988, and S.R.O. No. 717 of 1988 came into force with effect from July 1, 1987. 2.. Briefly stated, the aforesaid three notifications promulgated under section 10 of the Act, made an exemption in respect of turnover tax payable by dealers under section 5(2A) of the Act on the turnover of goods specified therein, in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand in form No. 14D of the Kerala General Sales Tax Rules, 1963, could be issued unless there is an admission of liability for turnover tax in the monthly returns filed. If the dealer does not admit any liability, the assessing authority has to follow the procedure prescribed for completion of an assessment and issue of demand in order to fasten the dealer with liability." It is from the aforesaid common judgment dated April 7, 1993*, this batch of writ appeals are filed. 4.. On behalf of the appellants, arguments were advanced by Shri C. Natarajan, Senior Counsel. The other counsel appearing in the various writ appeals supported the arguments advanced by Shri Natarajan. Before us, the pleas urged before the learned single Judge were repeated and the following aspects were highlighted: (i) The condition imposed in the notifications to prove payment of tax may not subserve the purpose envisaged by section 10 of the Kerala General Sales Tax Act. The condition imposed in the notifications runs against the spirit fixing liability at one stage. Having granted exemption the attempt is to collect tax which is not authorised; (ii) the notifications in fact create a liability. It ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practice of the dealer or is in accordance with the terms of a contract or agreement entered into in a particular case and provided also that the accounts show that the purchaser has paid only the sum originally charged less discount; (g) all amounts allowed to purchasers in respect of goods returned by them to the dealer when the goods are taxable on sales provided that the goods were returned within a period of three months from the date of delivery of the goods and the accounts show the date on which the goods were returned and the date on which and the amount for which refund was made; and (h) all amounts received from the sellers in respect of goods returned to them by the dealer, when the goods are taxable on the purchase value provided that the goods were returned within a period of three months from the date of delivery of the goods and the accounts show the date on which the goods were returned and the date on which and the amount for which refund was received: Provided further that save as otherwise provided in this sub-section, no other deduction shall be made from the total turnover of a dealer for the purposes of this sub-section. (ii) The provisions of this Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous to which the purchase relates) along with proof of payment of turnover tax due for the goods which I/we am/are liable to pay. Particulars of goods purchased Sl. No. No. and date of purchase bill issued by the purchaser Description of goods Quantity Value of goods purchased Turnover tax due and paid Remarks No. of packages Weight (1) (2) (3) (4) (5) (6) (7) (8) Place : Name, signature and status of the Date : persons signing the declaration. Note.-(1) The declaration shall be filed in duplicate and shall be signed by the person who is authorised to sign return in form No. 9. (2) Any subsequent purchaser may furnish the declaration furnishing the details prescribed therein. [Notification G.O. (P) No. 70/88/TD dated June 13, 1988 in Kerala Gazette Extraordinary No. 520 dated June 16, 1988.] 6. We examined the various points highlighted before us by Shri Natarajan, in the light of the relevant statutory provisions and the notifications. We also perused through the judgment of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as open to the Legislature to levy the turnover tax at all points in the series of sales or purchases under section 5(2A) of the Act, the Legislature has in its wisdom and as a matter of policy shown a concession by confining the levy at one point. The wisdom and propriety of the Legislature in that behalf and the manner in which the said policy is effectuated is not open to scrutiny by the courts. It is collectible only from one person in the series of sales or purchases and it is only persons who are dealing with the goods who are best fitted to prove an affirmative fact, namely, the person who is liable to pay the turnover tax and who has in fact paid such tax. We are of the view that the plea, that the condition imposed to prove payment of tax runs counter to the policy and purpose envisaged by section 10 of the Kerala General Sales Tax Act, is without substance. The concession or benefit of one point levy is subject to the condition. It is not open to the assessee to say that the exemption is valid, but not the condition imposed for availing of the exemption. 8.. Point No. (ii): We are not equally impressed with the plea that the notification creates the liability. In fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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