Special rebate remains available in best judgment assessment where the statute does not expressly bar the deduction.

Special rebate under Section 12 of the Kerala Value Added Tax Act remained admissible when tax on suppressed purchases was determined by best judgment assessment under Section 6(2), because the rebate formed part of the net tax computation and was not confined to tax voluntarily paid in the return. The absence of an express statutory bar was treated as significant, and the stricter invoice-based conditions applicable to input tax credit were held inapplicable. The earlier view allowing the rebate was affirmed, the request for reconsideration was declined, and the assessee was held entitled to the rebate on the additions made in assessment.

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Issues: (i) Whether special rebate under Section 12 of the Kerala Value Added Tax Act, 2003 is available while computing tax on suppressed purchases brought to tax under Section 6(2) of that Act in best judgment assessment; (ii) Whether the earlier decision holding such rebate admissible required reconsideration.

Issue (i): Whether special rebate under Section 12 of the Kerala Value Added Tax Act, 2003 is available while computing tax on suppressed purchases brought to tax under Section 6(2) of that Act in best judgment assessment.

Analysis: The rebate under Section 12 was held to be part of the computation of net tax payable and not dependent on a separate voluntary payment in the return. The words "tax paid" were not treated as excluding a case where tax liability is determined on best judgment assessment after suppression is detected. The absence of an express statutory prohibition against special rebate in such assessments was treated as significant. The distinction from input tax credit under Section 11 was emphasized, because that benefit is subject to a stricter procedural scheme and invoice-based proof, whereas special rebate is a deduction built into the return-based computation of tax liability.

Conclusion: Special rebate under Section 12 is admissible even on tax determined on suppressed purchases in best judgment assessment, and the finding is in favour of the assessee.

Issue (ii): Whether the earlier decision holding such rebate admissible required reconsideration.

Analysis: The earlier view was affirmed. The attempted analogy with the law relating to input tax credit and presumptive dealers was rejected because those provisions operate under a different statutory framework containing specific restrictions. No reason was found to displace the earlier interpretation of Section 12.

Conclusion: Reconsideration of the earlier decision was declined, and the earlier view was followed.

Final Conclusion: The assessee was held entitled to special rebate on the purchases added in best judgment assessment, and the revision was dismissed.

Ratio Decidendi: Where the statute does not expressly prohibit it, special rebate forming part of the net tax computation remains admissible even when tax liability on suppressed turnover is determined in best judgment assessment.

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