TMI Blog1998 (7) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order and all consequential proceedings. 2.. The assessment of the petitioner for the year 1992-93 under the Kerala General Sales Tax Act was completed by the first respondent by order dated January 28, 1994 (exhibit P1) and it is stated that it has paid the tax and surcharge demanded. Exhibit P2 is the revised assessment order dated March 15, 1997 under section 19 of the Act, passed by the first respondent after three years from the date of the original assessment on the ground that the turnover relating to certain goods escaped assessment of turnover tax to the tune of Rs. 22,078. It is stated that the said order was passed disregarding the objection filed by the petitioner. The dispute in this case is regarding the exigibili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order was passed taking contrary view that the notification is not applicable to goods sold at the last sale point falling under the Fifth Schedule, which according to the petitioner is contrary to the decision of this Court in Associated Cement Companies Ltd. v. Assistant Commissioner (Assessment), Sales Tax [1996] 101 STC 28. According to the petitioner, the commodity dealt with by it falls under this Schedule and tax is exigible on the two points mentioned therein, but by virtue of the notification no turnover tax is leviable on the turnover of such goods, as is evident from the notification read with the explanatory note. It is also stated that the levy of turnover tax in such case is violative of article 14 of the Constitution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i)(g) was exempted. It is further stated that the turnover of plywood and laminated sheet at the point of last sale was not brought to the levy of turnover tax at the time of original assessment and therefore the escaped turnover was sought to be assessed to tax under section 19 of the Act. It is further stated that notice under section 19 of the Act was issued proposing to levy turnover tax at the rate of 0.5 per cent on the turnover of Rs. 44,15,602.69, which was firmly objected by the petitioner. Exhibit P2 reassessment order was issued levying turnover tax on the said amount also. Respondents have also stated that the objects and purpose of the notification are clear and there is no scope for any interpretation. The Notification S.R.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the turnover tax is leviable at all points of sale or purchase of goods coming under the First and Fifth Schedules to the Kerala General Sales Tax Act, the Government have decided to restrict the levy of turnover tax on taxable turnover of sale of goods received on branch transfer only. Learned counsel submitted that while construing the notification, the rule of reasonable construction must be applied, as pointed out by the Supreme Court in the case of Goodyear India [1990] 76 STC 71; [1991] 188 ITR 402. Learned counsel further submitted that this Court in Associated Cement s case [1996] 101 STC 28 held that even the category of branch transfer retained as taxable by the notification has been held to be non-taxable. He further submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he turnover relating to goods received on consignment and on branch transfer. The explanatory note to the said notification stated that as per sub-clause (g) of clause (i) of subsection (2A) of section 5 of the Act the turnover tax is payable by the dealers whose total turnover exceeds Rs. 50,00,000 at all points of sale or purchase of goods coming under the First and Fifth Schedules to the Kerala General Sales Tax Act and that the Government have decided to restrict the levy of turnover tax on the taxable turnover of sales on the first sale point of goods received on branch transfer or consignment basis only. But for the exemption granted under Notification S.R.O. No. 1401/92 the petitioner would have been liable to pay the turnover tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 5(2A)(i)(g) of the Act except on the turnover relating to goods received on consignment and/or branch transfer arises only on the turnover of non-taxable goods. It is to be noted that prior to April 1, 1992 the position was that the liability to pay turnover tax was only in respect of non-taxable goods. This position was varied by the Kerala Finance Act, 1992 by amending section 5(2A)(i)(g) of the Act. Probably the Notification S.R.O. No. 1401/92 was issued to bring the position to the State prior to April 1, 1992 to make the liability to turnover tax at all points other than the taxable point. But the Government in the notification sought to make the exemption only in respect of first point sale without any reference to the taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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