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of <h1>High Court requires proof of exemption conditions for turnover tax. Orders set aside, cases remanded for evidence.</h1> <h3>Mahavir Plantations Limited Versus State of Kerala</h3> The Kerala High Court held that although the petitioners were not liable to pay turnover tax as the second seller of tea, they must prove compliance with ... - Issues: Liability for turnover tax on tea sales; Requirement of declaration for exemption; Proof of payment of turnover tax at the second point of sale.In the judgment delivered by the Kerala High Court, the petitioners, plantation companies engaged in tea production, were involved in a dispute regarding the liability for turnover tax on tea sales. The tea produced was sold in auction by brokers, and the question arose whether the petitioners were liable to pay turnover tax under section 5(2A) of the Kerala General Sales Tax Act. An exemption from turnover tax on tea was granted by a notification, except at the point of second sale in the State, subject to the condition of producing a declaration from the dealer who paid the turnover tax. The petitioners did not produce this declaration before the authorities, leading to a disagreement between the petitioner's counsel and the Government Pleader on the necessity of compliance with the conditions for exemption.The court referred to a previous judgment related to a similar notification concerning other commodities, emphasizing the importance of fulfilling the condition of producing the declaration for availing the exemption. The court agreed with the reasoning of the previous judgment, highlighting that although the petitioners were not liable to pay tax as the second seller, they still needed to prove the conditions stipulated in the notification to claim the exemption. Additionally, the court noted that the petitioners could provide other satisfactory evidence in place of the declaration to establish the requisite facts for exemption.Moreover, the court considered another judgment where a petitioner was relieved from paying turnover tax based on evidence other than the declaration form. In light of these precedents, the court concluded that the petitioners should be given an opportunity to produce proof of payment of turnover tax by the dealer at the second point of sale. Consequently, the orders passed by the Tribunal were set aside, and the cases were remanded back to the Sales Tax Appellate Tribunal for the petitioners to present the necessary documents or evidence. The Tribunal was instructed to reexamine the appeals after considering the provided documentation and hearing all parties involved. The court emphasized the importance of fulfilling the requirements for exemption and providing relevant evidence to support the claim.In conclusion, the court allowed the petitioners the chance to demonstrate compliance with the conditions for exemption from turnover tax on tea sales, highlighting the significance of producing the required declaration or alternative satisfactory evidence to establish eligibility for the exemption.
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