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2018 (12) TMI 482 - HC - VAT and Sales TaxLevy of Turnover tax - turnover of saw mill - Section 2(xliv) of the Kerala Value Added Tax Act, 2003 - amounts shown as labour charges were deleted - Held that:- No examination of records or facts by the first appellate authority. The first appellate authority merely stated that “the further case of the appellant that he deals only with timber like pincoda etc is also found correct as per his books of accounts. Since the sawing charges collected is not related to the timber sold by the appellant, the receipt cannot be classified as one coming under section 2(xliv) and hence cannot be taxed” (sic). Obviously this finding has been rendered without looking into the records and the finding is belied by the specific invoice pointed out from the records by the learned Government Pleader - answered against the assessee and in favour of the Revenue. Inclusion of separate job works u/s 2(xliv) - contention of the assessee was that the job works did not relate to the goods manufactured and sold by the assessee - any mandate in Rule 58(1)(x) of the Kerala Value Added Tax Rules, 2005 for showing the complete name and address of the person from whom such job work was taken especially in view of Section 40A(2) specifying the requirement of complete address only in case of invoices issued in respect of a taxable sale or not. Held that:- A register was maintained, but it did not contain the entire particulars - also, the AO had issued notices to many of the persons shown in the register, which notices could not be served for reason of there being insufficient address. The assessee had also not sought for summoning any particular person as revealed from the register for the purpose of giving evidence, nor was such contention taken at any of the higher levels of appeal provided by the statute. The Assessing Officer cannot be faulted for having added back the sawing charges, in the context of no proof of job-works having been effectively adduced before him. The Assessing Officer was perfectly right in having treated the actual charges levied for sawing; an essential activity in the process of manufacture of furniture to be part of consideration of the goods sold - decided against the assessee and in favour of the Revenue. Revision dismissed.
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