9911796707
TMI Blog2013 (8) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... . The petitioner is a dealer of raw cashews, as well as a manufactures and dealer of cashew kernels. In the course of business, such commodity was imported from different sources and the petitioner has been filing returns remitting tax, as prescribed, based on the entries in the return, both under the KVAT Act and the CST Act. However, the first respondent issued a notice, proposing to reject the returns and to effect assessment on the basis of Ext. P4 Circular bearing No. 38/2007 dated 24.08.2007 issued by the second respondent, wherein it is stipulated that the imported raw cashew nuts shall be valued at the minimum rate of Rs. 22 per Kg; thus fixing the 'floor rate' for the commodity concerned. Still, the assessing officer proposed to v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant provisions of law had come up for consideration of this Court and as per the decision reported in [2010] 27 VST 536 (Ker.) (KMP Timbers Vs. Commercial Tax Inspector, Kasargode and another). It was held that the Commissioner was very much vested with powers to have issued such Circulars to safeguard the interest of Revenue. The entire facts and circumstances and the necessity to have issued such Circulars invoking the power conferred under the Statute were discussed in detail in the said judgment. But, it is brought to the notice of this Court, that the sanctity of issuing such Circular was more with reference to fixation of 'advance tax' under Section 47 (16A) of the Kerala Value Added Tax Act, 2003. The course available to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evealed that Exts. P1 to P3 assessment orders have been passed by the first respondent, simply relying on Ext. P4 Circular issued by the Commissioner. It has to be read and understood that, the scope of the said Circular is with regard to the 'precautionary steps' to be taken against any possible attempt to defeat the revenue; more so, in connection with the occasion necessitating payment of 'advance tax' under Section 47 (16A). It is always open for the assessee to satisfy the department as to the actual price of the commodity concerned and to have the assessment accordingly. It is equally open for the Department/Revenue to contradict the version of the assessee, pointing out the incriminating circumstances and also as to the credibility/a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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