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2011 (6) TMI 718 - KERALA HIGH COURTAssessment on sale of deep freezers and disallowance of input tax credit claimed under section 11 of the Kerala Value Added Tax Act, 2003 challenged Held that:- No merit in the contention of the petitioner that there is no sale of deep freezers to the distributors because in fact it is a sale on deferred payment basis and the cost is recovered at 25 per cent each for the four years from the date of delivery. In our view, the transaction is a pure sale but on credit basis payable in four instalments. The lower authorities including the Tribunal rightly found that the agreement does not reflect the nature of transaction which is nothing but outright sale camouflaging the consideration as deposit, which will be adjusted in four equal instalments in the course of four years. We, therefore, reject this contention raised by the petitioner and uphold the order of the Tribunal. These revision cases are allowed in part by directing the assessing officer to verify the payments received, outright and or deferred by way of deposit or otherwise in respect of the supply of deep freezers by the petitioner, and grant input tax credit subject to the second proviso to section 11(3) of the Act
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