High Court Kerala High Court

G.K. Shibu vs The Commercial Tax Officer on 19 February, 2008

Kerala High Court
G.K. Shibu vs The Commercial Tax Officer on 19 February, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 1739 of 2008(F)


1. G.K. SHIBU,
                      ...  Petitioner

                        Vs



1. THE COMMERCIAL TAX OFFICER,
                       ...       Respondent

                For Petitioner  :SRI.PREMJIT NAGENDRAN

                For Respondent  :GOVERNMENT PLEADER

The Hon'ble MR. Justice ANTONY DOMINIC

 Dated :19/02/2008

 O R D E R
                           ANTONY DOMINIC, J.

                         ===============

                     W.P.(C) NO. 1739 OF 2008 F

                    ====================


            Dated this the 19th day of February, 2008


                               J U D G M E N T

The prayer sought for in this writ petition is to direct the

respondent to issue delivery notes to the petitioner forthwith

after collecting advance tax.

2. Petitioner submits that he is a dealer who has obtained

registration in July,2007 and Ext.P1 is the certificate of

registration. According to him, he has been doing business in

plywood and glasses. Exts.P2 to P14 are the chelan receipts for

payment of advance tax during the period from August, 2007.

Petitioner also submits that he has remitted substantial amounts

towards tax at the checkposts. It is submitted by the petitioner

that in compliance with the circular issued by the Commissioner

for Commercial Taxes, though he has been carrying on business

paying tax in advance, respondent is now refusing to issue

delivery notes even on payment of advance tax. Ext.P15 is a

WPC 1739/08

:2 :

request made by the petitioner highlighting his grievances, but

then, even that representation was not responded. It is in this

background this writ petition has been filed.

3. A statement has been filed on behalf of the

respondent. The fact that the petitioner is a registered dealer and

that he has been carrying on business in plywood and glasses is

not seen disputed in the statement. However, it is stated that

while filing returns, a statement incorporating the details

contained in the purchase bill is a mandatory requirement under

Rule 22(3) of the KVAT Rules. According to the respondent, the

petitioner filed purchase statement, but the details which are

required are not incorporated therein, as a result of which, the

persons mentioned therein are unidentifiable. It is also stated

that C forms furnished by the petitioner were bogus and the

respondent has, as an example, cited the case of

M/s.M.S.K.Enterprises.

4. A reading of the statement would thus show that it is

on account of the absence of details in the statement regarding

the purchase bills, that the respondent is refusing to issue

WPC 1739/08

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delivery notes to the petitioner. According to them, they had

issued a notice to the petitioner on 4/9/2007 calling upon him to

produce the purchase bills for verification and that notice was not

responded nor has the petitioner made himself available before

the respondent.

5. Petitioner has filed a reply affidavit. Though the

allegations in the statement filed by the respondent are denied by

the petitioner, it is contended that the Commissioner of

Commercial Taxes has issued Ext.P16 circular making it

mandatory to furnish the address of the selling dealer. Petitioner

submits that the petitioner undertakes that all future bills will

bear the full name and address of the selling dealer. According to

the petitioner, the respondent ought to be directed to issue

delivery notes to him.

6. From the nature of the contentions raised by the

parties, the issue that arises is as to whether the petitioner has

furnished details of the selling dealers in the statements filed

along with the returns. The documents that are required to be

furnished and the information that a dealer has to supply to the

WPC 1739/08

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assessing authority are those mentioned in Rule 22 of the KVAT

Rules, 2005. Rule 22(3) provides that along with the return, the

records mentioned therein shall also be submitted. Ten records

are indicated and most of them are statements to be filed by the

assessee.

7. Ext.P16 circular only reiterates the requirement of the

rules and in so far as this writ petition is concerned, Clause 7

being relevant reads as follows:

(vii) Assessing authorities should verify all the returns

filed by the plywood/veneer dealers. If the purchase

list is filed by such dealers without complete

identifiable name and address of the purchaser no

Delivery Notes to be issued to such dealer.

Plywood/veneer being an industrial product, assessing

authorities should take all steps to identify and to

register such unregistered dealers.

A comparison of Clause 7 extracted above with the specifications

contained in Rule 22(3) of the KVAT rules would show that the

Commissioner was only reiterating what is provided for in the

rules. Therefore, even prior to the issue of Ext.P16, it was the

obligation of dealers like the petitioner, to provide complete and

identifiable names and address of the purchasers.

WPC 1739/08

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8. In this case, admittedly such details were not provided

in the return or the documents attached thereto and the

petitioner only offers that he shall comply with this requirement

for his future sales. Since on the materials, I conclude that the

requirement of furnishing identifiable names and addresses of the

purchaser is a requirement of Rule 22(3) of the KVAT Rules, I am

satisfied that the petitioner has failed in that respect. If there is

such a failure on his side, petitioner cannot demand that the

respondent should be directed to issue delivery notes at this

stage.

Writ petition is only to be dismissed and I do so.

ANTONY DOMINIC,JUDGE.

Rp