IN THE HIGH COURT OF KERALA AT ERNAKULAM
ST.Rev..No. 86 of 2010()
1. KAMASU EXPORTS, VENNALA P.O.,
... Petitioner
Vs
1. STATE OF KERALA,
... Respondent
For Petitioner :SRI.P.RAVINDRA NATH
For Respondent : No Appearance
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice P.S.GOPINATHAN
Dated :29/03/2010
O R D E R
C .N. RAMACHANDRAN NAIR &
P.S. GOPINATHAN, JJ.
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S. T. Rev. No. 86 OF 2010
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Dated this the 29th day of March, 2010
JUDGMENT
Ramachandran Nair, J.
Heard counsel for the review petitioner and Government Pleader.
The dispute raised is against assessment of tax on purchase turnover
under Section 5A of the Act and also against assessment of drawback.
After hearing both sides and after going through the orders impugned
we find force in the contention of counsel for the petitioner that
drawback is not turnover assessable under the KGST Act because it is
refund of excise duty paid on the goods exported. Purchases for export
are entitled to exemption and in fact levy under Section 5A is limited to
purchases from unregistered dealers. However, drawback claimed
represents excise duty paid on goods purchased from registered dealers,
which were exported. There is no assessment of purchase turnover
from registered dealers who would have claimed exemption based on
Form 18A issued by the petitioner. So much so there is no case for
assessment of drawback received as turnover. We therefore allow the
2
revision partly by reversing the order of the Tribunal and that of the
lower authorities and direct the assessing officer to exclude Rs.
3,19,233/- from the taxable turnover.
2. So far as assessee’s challenge against assessment under
Section 5A on purchases from unregistered dealers is concerned,
inspite of one round of remand, assessee could not prove that suppliers
had taxable turnover entitling the assessee for exemption. Since details
of purchases were not furnished assessment under Section 5A is
tenable, particularly when the assessee has not only exports but has
local sales as well. We therefore decline to interfere with the
Tribunal’s order on this issue.
Revision stands allowed to the limited extent stated above.
(C.N.RAMACHANDRAN NAIR)
Judge.
(P.S. GOPINATHAN)
Judge.
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