9911796707
TMI Blog2024 (7) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... ular at the Border Check Posts. It is thus clear that the tax collected in terms of the Circular is only an advance tax, which could be adjusted against the actual tax payable by a dealer while completing the assessment for the particular year. In the facts of the present case, it is not disputed that there was no taxable transaction entered into by the petitioner, and the goods in question had only been stock transferred to the Branch Office of the petitioner at Pollachi. Section 13 of the KVAT Act deals with the refund of input tax credit in the case of export or inter-State sale. A combined reading of the provisions of Circular No. 50/2006 and the definition of input tax in Section 2 (xxiii) of the KVAT Act indicates that the tax paid in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Head Office at Feroke, such imported timber is transported to Pollachi or Feroke from the ports of arrival. During the year 2009-2010, the petitioner had effected stock-transfer of certain timber from Feroke to Pollachi. The value of the stock, so transferred by way of stock-transfer, was Rs. 39,24,347/-. In a notice issued to the petitioner under Section 25 (1) of the KVAT Act, it was indicated that, in respect of the stock, which was transferred from Feroke to Pollachi, the petitioner would be entitled to credit in respect of the advance tax paid in terms of Circular No. 50/2006 dated 18-12-2006 only to the extent such tax that was in excess of 4%. Though the petitioner objected to the restriction of credit in the manner indicated ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Section 13 of the KVAT Act deals with input tax credit, and the definition of input tax credit in Section 2 (xxiii) of the KVAT would indicate that advance tax paid in terms of the provisions contained in the Circular cannot be classified as input tax. 3. The learned Senior Government Pleader appearing for the respondents would attempt to justify the denial of credit in the manner set out in Ext. P3 by referring to the provisions contained in Section 13 of the KVAT Act. The learned Senior Government Pleader places specific reliance on the provisions of sub-section (2) of Section 13 as also to the Second proviso to Section 13 (2) of the KVAT Act to contend that the view taken by the officer in Ext. P3 is justified and the petitioner is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guidelines already circulated for valuation of items such as Chicken, Timber, etc. shall be followed. The dealers who pay advance tax as detailed above can adjust the said amount against the output tax due for the month while filing return for the respective return period. These orders shall take immediate effect. Commissioner. A reading of the Circular will clearly indicate that the Circular was intended to ensure that there is no evasion of tax in respect of the goods specified in that Circular by collecting an advance tax at different rates for different goods as specified in the Circular at the Border Check Posts. It is thus clear that the tax collected in terms of the Circular is only an advance tax, which could be adjusted against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commerce or otherwise; or (v) used as Capital goods; the input tax paid on such goods shall be refunded to the person making such sales in the course of export or in the course of inter-State trade or commerce or sending such goods to outside the State, as the case may be, in such manner and subject to such conditions as may be prescribed: Provided that the dealer claiming such refund shall not claim input tax credit on such purchases for any return period: Provided further that where the goods are sent to outside the State otherwise than by way of sale in the course of inter- State trade or export or where the sale in the course of interstate trade is exempted from tax, the refund under this section shall be limited to the amount of input ..... X X X X Extracts X X X X X X X X Extracts X X X X
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