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TMI Blog2020 (10) TMI 1288X X X X Extracts X X X X X X X X Extracts X X X X ..... e expressed by the purchasing dealer, the fulfillment of which is the essence of the concession granted. Further, it has to be noticed that though there is a recital in Form No.42 that the purchasing dealer is recognized by the Administrator, UT of Lakshadweep, there is nothing produced to evidence the same - there can be no concessional rate claimed by the revision petitioner on the facts of these years since there is no document produced which could prove the movement of goods to the Islands, as would a shipping bill - issue regarding concessional rate of tax, is answered against the assessee and in favour of the revenue. Allowance claimed on the damaged goods - HELD THAT:- Despite the stock details having been tabulated in the Annex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviso of Section 6(1) of the KVAT Act and Rule 12C of the KVAT Rules? 2. Whether addition of sales turnover on assumption of sale of damaged goods is justifiable, particularly when there is no allegation of unaccounted sale or stock difference? 2. We have head learned Senior Counsel K.Srikumar appearing for the revision petitioner/assessee and learned Senior Government Pleader Shamsudeen appearing for the respondent State. The learned Senior Counsel would take us through the proviso and Rule 12C to contend that there is substantial compliance. Form No.42 was produced and in lieu of shipping bills, Application to Export as made by the purchaser before the Port authorities, has also been produced; as required under Rule 12C. 2010(4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso to sub-section (1) of section 6 shall obtain a declaration in Form No.42, duly signed and sealed by the buyer along with the copy of the shipping Bill, or similar document duly attested by the Port Authorities and file a copy each of the same along with the return filed under Rule 22. The originals shall be retained by the dealer and shall be provided on demand by any authority under the Act. Read together the concession is for a sale made to the Administrator, UT of Lakshadweep, the Laccadive Co-operative Marketing Federation, the Lakshadweep Harbour Works and registered dealers certified by the Administrator, on such conditions as may be prescribed. Rule 12C prescribes the conditions to be production of declaration in Form No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er effects supplies to the Lakshadweep Administration itself that too in the main land, the requirement of production of a copy of a shipping bill duly attested by the Port authorities is not necessary. Especially since it cannot be fulfilled by the supplying dealer, who is not involved in the transportation of the goods to the Islands. 5. We are unable to agree with the said proposition even if the sale is directly to the Lakshadweep Administration; which herein is not the case. The sale invites the concessional rate as per the proviso only if it is made to the Administrator, the Marketing Federation, Harbour Works or registered dealers certified by the Administrator, on conditions prescribed in Rule 12C. Rule 12C provides for Form No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cession being granted under a notification, the terms of which are slightly different. Therein the Schedule to the notification provided for sale to the very same entities as available in the first proviso to Section 6(1), being entitled to the concession subject to the condition that such dealer shall utilise the concession only for such goods intended for the use in the UT of Lakshadweep (sic). The Division Bench found that the declaration by the purchaser and the utilisation of goods in the Islands were the two conditions to be satisfied. But there was no means provided by which the seller could control the use by the purchaser. The utilisation was a mandate on the purchasing dealer, which clearly absolves the selling dealer from any ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich could prove the movement of goods to the Islands, as would a shipping bill. The first question raised by the assessee is answered against the assessee and in favour of the revenue. 8. The next question is with respect to the allowance claimed on the damaged goods. Despite the stock details having been tabulated in the Annexures produced before us, as the learned Government Pleader alertly points out, the claim was not substantiated with records, ledgers or books of accounts before the fact finding authorities. We see that the fact finding authorities, including the Tribunal has recorded that nothing is produced to substantiate the claim. Even then, 50% of what was claimed was allowed presumably on realisation of the basis of such d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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