Conditional turnover-tax exemption can be proved by alternative evidence when the prescribed declaration is unavailable.

A conditional turnover-tax exemption notification for arecanut remained valid even though it required a declaration, and the burden was on the assessee to prove entitlement. Where the declaration was not produced, exemption could still be established by other satisfactory evidence showing that tax had already been paid at the preceding point of sale. On the stated facts, the assessee was found to be the last purchaser and the record showed prior tax payment, so the burden of proof was discharged and the turnover-tax exemption was available.

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Issues: Whether the assessee was entitled to exemption from turnover tax on arecanut under the notification despite not producing the declaration prescribed by the notification, where the assessee showed that it was the last purchaser and that tax had already been paid at the preceding point of sale.

Analysis: The exemption notification issued under section 10 of the Kerala General Sales Tax Act, 1963 granted exemption from turnover tax on specified goods at all points of purchase except the purchase preceding export or the last purchase, and required a declaration as a condition for claiming the exemption. The notification is valid as a conditional exemption, and the burden lies on the assessee to establish entitlement. However, where production of the declaration is difficult, the entitlement may be proved by other satisfactory evidence showing that the tax was paid at the prior point. In the present case, the Tribunal itself found that the assessee was the last purchaser and the material on record showed payment of tax on the relevant purchase turnover, thereby discharging the burden of proof.

Conclusion: The assessee was entitled to the exemption and was not liable to turnover tax on the arecanut.

Final Conclusion: The revision was allowed and the order levying turnover tax was set aside in respect of the arecanut turnover.

Ratio Decidendi: A condition requiring a declaration for claiming exemption under a turnover-tax notification is valid, but the assessee may establish entitlement by other satisfactory evidence when the declaration is not produced, provided the burden of proof is discharged.

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