https://www.taxtmi.com/caselaws?id=221292 The KVAT regime permits the Commissioner to prescribe a floor rate for evasion-prone commodities as an anti-evasion measure, and that power was upheld as a valid incident of the statutory scheme. However, where imported betel nuts were moved outside Kerala on consignment basis with no local sale, the authorities had no basis to insist on declaration of that floor rate in delivery notes or to detain the consignments for non-declaration. The article therefore states that the floor-rate mechanism is legally sustainable for preventive tax enforcement, but it cannot be applied mechanically to impede consignments on facts that do not justify advance-tax enforcement. en-us Wed, 05 Dec 2012 00:00:00 +0530 Fri, 11 Jul 2014 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221292 The KVAT regime permits the Commissioner to prescribe a floor rate for evasion-prone commodities as an anti-evasion measure, and that power was upheld as a valid incident of the statutory scheme. However, where imported betel nuts were moved outside Kerala on consignment basis with no local sale, the authorities had no basis to insist on declaration of that floor rate in delivery notes or to detain the consignments for non-declaration. The article therefore states that the floor-rate mechanism is legally sustainable for preventive tax enforcement, but it cannot be applied mechanically to impede consignments on facts that do not justify advance-tax enforcement. Case-Laws VAT and Sales Tax Wed, 05 Dec 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221292