Presumptive tax eligibility based on turnover cannot be denied solely because suppressed turnover was detected.

A registered dealer eligible for presumptive tax under Section 6(5) of the Kerala Value Added Tax Act could not be denied the concessional rate merely because suppressed turnover was detected, where the assessed total turnover still remained below the statutory threshold. The provision confers the benefit on turnover-based eligibility and contains no express disqualification withdrawing it on detection of suppression. The assessment and the dismissal order were therefore set aside, and the matter was remanded for fresh assessment after notice to the assessee.

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Issues: Whether a registered dealer who had opted for presumptive tax under Section 6(5) of the Kerala Value Added Tax Act, 2003 could be denied that benefit merely because suppression of turnover was detected, when the assessed total turnover remained below the statutory threshold.

Analysis: Section 6(5) grants an eligible registered dealer, whose total turnover is below the prescribed limit, the option to pay tax at the concessional presumptive rate. The assessment order had added suppressed turnover and applied tax at the regular rate, but the quantified turnover still remained below the threshold specified in the provision. The provision contains no disqualification that withdraws the concessional benefit merely on the detection of suppression, and the existence of suppression by itself does not override the statutory entitlement where the turnover condition continues to be satisfied.

Conclusion: The dealer was entitled to the benefit of Section 6(5), and denial of that benefit on the sole ground of detected suppression was unsustainable.

Final Conclusion: The assessment and the dismissal order were set aside, and the matter was sent back for fresh assessment after notice to the assessee.

Ratio Decidendi: Where a taxing provision grants concessional treatment based on turnover eligibility and does not expressly withdraw that benefit on detection of suppression, the benefit cannot be denied so long as the assessee's quantified turnover remains within the statutory limit.

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