https://www.taxtmi.com/caselaws?id=162744 Section 47(16A) of the Kerala Value Added Tax Act was construed as validly permitting advance collection of tax on evasion-prone commodities to secure revenue before goods become difficult to trace. Applying a purposive interpretation, the Court held that limiting collection to post-sale stages would defeat the statutory object, so the connected circulars were only an implementation of the statutory power and not a fresh levy. The delegation to the Commissioner to identify evasion-prone commodities was upheld as supported by adequate legislative guidance, with a rational nexus to preventing tax evasion. The challenges based on excessive delegation and constitutional invalidity under Articles 14, 19(1)(g), 246, 265 and 301 were rejected. en-us Thu, 08 Mar 2007 00:00:00 +0530 Thu, 01 Feb 2024 10:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=162744 Section 47(16A) of the Kerala Value Added Tax Act was construed as validly permitting advance collection of tax on evasion-prone commodities to secure revenue before goods become difficult to trace. Applying a purposive interpretation, the Court held that limiting collection to post-sale stages would defeat the statutory object, so the connected circulars were only an implementation of the statutory power and not a fresh levy. The delegation to the Commissioner to identify evasion-prone commodities was upheld as supported by adequate legislative guidance, with a rational nexus to preventing tax evasion. The challenges based on excessive delegation and constitutional invalidity under Articles 14, 19(1)(g), 246, 265 and 301 were rejected. Case-Laws VAT and Sales Tax Thu, 08 Mar 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=162744