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2021 (10) TMI 805 - HC - VAT and Sales TaxRejection of concessional rate of tax applicable to sales made in favour of Lakshadweep Administration - Seeking declaration that Rule 12C(1) of the Rules as invalid - proviso to Section 6(1) of the Act, read with Rule 12C of Kerala Value Added Tax Rules, 2005 - rejection for want of proof of other requirements prescribed in Rule 12C, namely, shipping bill or similar document duly attested by the port authorities - HELD THAT:- The Courts strongly lean against any construction which tends to reduce a statutory requirement to futility. The requirement in legislation or subordinate legislation must be read/construed so as to make it effective, albeit such construction is not possible because of vagueness of language, the language is wholly interactable. The State legislature and the delegatee are having jurisdiction to make law/rules in regard to Value Added Tax. We refuse to sit as a super legislature to weigh the wisdom of requirements in proviso to Section 6(1) or Rule 12C. Courts normally refuse to examine the wisdom of expression of legislature/executive in tax, categories of taxes, rate of taxes, person who are brought under the tax purview etc. As it is said, words are the framework of concept or policy of Legislature/Government and the fact is that the concept or policy could change more quickly than the words. The dealer had a choice whether to sell at the regular/applicable rate or claim a concessional rate of tax. The dealer chooses to sell the goods at concessional tariff and collects tax as applicable to the sale, therefore, the dealer is expected to comply with other requirements prescribed under the Rule for claiming concessional rate of tax. The dealer having sold the goods at concessional rate of tax, cannot be heard to challenge the very prescription as impossible of performance, ineffective in practice etc. In the process of interpretation or application, relevant expression chosen by the legislature or the executive ought not to be ignored or diluted. The case of dealer if accepted, the same would result in overlooking the clear expression of the rule making authority. The claim of dealer for concessional rate without placing on record all the requirements of Rule 12C is misconceived and liable to be rejected. The rule making authority, both from the wisdom and experience gained over years, has stipulated the prescription to give concessional rate of tax to such transactions which reach the Union Territory. The misuse of concessional rate of tax cannot be overlooked while accepting a purposive interpretation, hence the rule insists production of shipping bill or similar document attested by the port authorities. Appeal allowed.
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