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2012 (1) TMI 140 - KERALA HIGH COURTWhether 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? Held that:- "Tax paid" under sub-section (2) of section 6 or section 12(1)(a) will mean tax paid based on return filed or the tax payable based on assessment made by the officer so that in either case the liability under section 12(1)(a) is net tax liability after providing for rebate on purchase tax. This position is only clarified by the subsequent introduction of rule 38(5) which expressly grants the benefit of rebate on purchase tax payable under section 6(2) to the dealer in the case of assessment made by estimation of turnover. We do not think the Legislature or the Government intended denial of rebate on purchase tax liability under section 6(2) against tax payable by the dealer for any return period. So much so, the contention of counsel for the petitioner that the rule is only clarificatory is tenable. We accordingly allow the revision for the limited purpose of granting rebate of tax determined as payable under section 6(2) against the tax payable on the estimated sales turnover for the return period August 2006. Revision is allowed in part by sustaining turnover assessed and confirmed by the Tribunal but by directing the officer to grant rebate of purchase tax as stated above.
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