TMI Blog2004 (10) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be accepted for the reasons that an amount of Rs. 9,810 received as export house premium and Rs. 33,41,124.95 received as duty entitlement pass book (DEPB) premium, which are liable to be assessed under section 5 of the Kerala General Sales Tax Act, 1963, were excluded in the return. Though time was granted, the assessee did not file any objection. The assessment was completed as proposed. The petitioner was unsuccessful in the appeals. Hence, this revision. The learned Senior Counsel for the petitioner contended that the judgment of the Appellate Tribunal was wrong and hence be set aside. On the other hand, learned Senior Government Pleader (Taxes) argued supporting the judgment of the Tribunal. The DEPB Scheme was introduced as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the demand of the items which are allowed to be imported as per the DEPB. If the demand is more the premium will be high and vice versa. At present, the prevailing premium is around 113 per cent of the DEPB amount. That means a holder of DEPB will get Rs. 113 for every 100 rupees, value of the DEPB. The rate also depends on other factors like name of port, etc. Even though DEPB can be utilised only for import at the port specified in the DEPB, imports through other ports will be allowed under TRA facility as per the terms and conditions of the notifications issued by the Department of Revenue. The learned counsel for the petitioner contended that there is no transfer of goods involved and hence it is not exigible to tax. He further co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. If lottery tickets are goods, there is no reason why these licences/scrips are not goods. In Philco Exports v. Sales Tax Officer [2001] 124 STC 503, regarding the words property and goods, the Delhi High Court considers the DEPB scheme and held as follows (page 503): Under the Import and Export Policy, the duty entitlement pass book scheme (DEPB) is intended to neutralise the incidence of basic customs duty on the import content of the export product. The DEPB permits adjustment in payment of customs duty and if there is no adjustment, the amount in question lapses. The amount can be transferred to any person and it is essentially a right to claim back credit which is freely tradable. The right to have a credit is enforceable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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