9911796707
TMI Blog2016 (7) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the year 2011-12 the purchase turnover of the petitioner under Section 6(2) was 11,50,358/- and the tax on the said Rs. amount would come to Rs.1,43,795/-. In respect the assessment year 2012-13 the purchase turnover is Rs.18,67,305.16/- and the tax due computed at 13.5% is Rs.2,52,086.18/-. The total output tax payable by the petitioner during the relevant years was more than the special rebate claimed for the purchase turnover as per Section 6(2). However, while making the assessment, the assessing officer had only given a special rebate at 4% of the purchase turnover for the year 2011-12 and 5% for the year 2012-13. This according to the petitioner is on a wrong interpretation of the fourth proviso to Section 12(1) of the Act. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or used in the course of manufacture of taxable goods in the month in which it is purchased, the special rebate allowable in respect of such goods resold or sold in the course of interstate trade or used in the manufacture of goods liable to pay tax under this Act or Central Sales Tax Act, 1956 may be availed in the month itself. Provided also that where the goods in respect of which tax under subsection (2) of section 6 or under section 3 of the Kerala Tax on Entry Goods into Local Areas Act, 1994 has been paid, are sent outside the State or used in the manufacture of goods and the same are sent outside the State, otherwise than by way of sale in the course of interstate trade or export or where the sale in the course of inter-state tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taxable under Section 6(2) of the Act and had used the goods in the manufacture of taxable goods. The output tax payable by the petitioner is admittedly above the rebate that has been claimed by the petitioner. The question is regarding the interpretation of the words "then the special rebate under this section shall not exceed the output tax payable in respect of such goods or goods manufactured out of such goods." The officer had opined that since the rate of tax for output tax payable is 4% and 5% in the respective years of assessment, the rebate has to be limited to 4% and 5% during the aforesaid assessment years. The learned counsel for petitioner argues that the proviso contemplates special rebate up to the total output tax payable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of tax. If the legislature intended to restrict the rebate on the basis of the rate of tax, there was no reason why such a specific provision should not have been incorporated in the statute. Therefore, it can only be assumed that the legislature intended that "the special rebate under this section" means "the rebate in terms of Section 12(1)(a)". The words "shall not exceed output tax payable" means that "the output tax payable by the dealer". Further the words "goods manufactured out of such goods" means "the goods manufactured using the goods purchased by paying tax under Section 6(2). This provision only means that the rebate shall not exceed the output tax payable for the goods manufactured by using the goods purchased in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
