2012 (1) TMI 140

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.... J.-The question raised is whether the Tribunal was justified in declining rebate of tax under section 12(1)(a) of the Kerala Value Added Tax Act read with rule 38(5) of the Kerala Value Added Tax Rules on the purchase turnover of old gold ornaments from the tax determined on estimated turnover based on inspection done during the return period, August 2006. We have heard counsel for the petitioner....

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....ade best judgment assessment under section 24 declined it. In the first appeal quantum relief as well as rebate was allowed. However, on second appeal by the State, the Tribunal reversed it restoring the assessment. It is against this order of the Tribunal the petitioner has filed the appeal. Since the controversy is only on the eligibility for rebate of purchase tax assessed on estimated turno....

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....led to rebate of tax under section 12(1) by virtue of rule 38(5) because under the said rule, in the course of making best judgment assessment, the assessee is entitled to rebate under section 12(1)(a) on the tax payable on estimated purchase turnover. However, the assessee is declined the benefit which was confirmed by the Tribunal for the reason that rule 38(5) was introduced only by SRO No. 7/2....

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....turnover returned by the dealer. However, when the concept of tax liability under the section is only the net tax payable, it goes without saying that in all type of assessments the tax payable is the net tax on sales turnover after granting rebate of the tax payable under section 6(2) on the purchases. Therefore, in our view, the "tax paid" under sub-section (2) of section 6 or section 12(1)(a) w....