9911796707
TMI Blog2010 (7) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioner has not taken permission under section 6(1A)(a) of the Act prior to collection of tax, which according to the officer, is the requirement of the said section in terms of rule 10A of the Kerala Value Added Tax Rules (hereinafter called, "the Rules") as the turnover was below Rs. 10 lakhs. For collecting and remitting tax by the petitioner who had turnover below Rs. 10 lakhs without permission under section 6(1A)(a) read with rule 10A of the Rules, the assessing officer forfeited the tax collection and levied penalty under section 67(2) of the Act for the alleged violation. In first appeal, the appellate authority, though cancelled penalty levied under section 67(2), left freedom to the officer to consider penalty under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Central Government or Government of any Union Territory or any Department thereof or any local authority or any autonomous body whatever be his total turnover for the year, shall be liable to pay tax on his sales or purchases of goods as provided in this Act. The liability to pay tax shall be on the taxable turnover- . . . (1A) Notwithstanding anything contained in sub-section (1),- (a) where a dealer whose total turnover for a year is below the limit specified in sub-section (1) collects tax under section 30 on his sales, he shall, whatever be his total turnover for the year, be liable to pay tax under sub-section (1) on the taxable turnover for the year. (b) where the sale of any goods is exempted at the point of sale by any dealer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable limit of Rs.10 lakhs. While the contention of the petitioner is that dealers like petitioner who have registration are entitled to collect tax and remit the same without any prior permission under rule 10A, the contention of the Government Pleader is that both dealers with turnover below the nontaxable limit of Rs.10 lakhs falling under sub-clause (a) and dealers in whose hands sale of any goods are exempted, covered by sub-clause (b) of section 6(1A), should obtain advance permission from the officer under rule 10A by filing form 1F prescribed under the said rule. It is an undisputed position that a dealer whose annual turnover is below the limit prescribed, namely, Rs. 10 lakhs, has no liability to take registration under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 30 on his sales and remitting the same. The only consequence stated therein is that such dealer will be liable to pay tax on the entire taxable turnover irrespective of whether the turnover is below the non-taxable limit. Further, section 30(4) reiterates that if a registered dealer has collected tax under sub-section (1), he shall be liable to tax on the taxable turnover, no matter his turnover is below the limit prescribed under section 6(1) of the Act. Levy of tax obviously applies only to taxable commodities and the situation contemplated by the above provisions is that a dealer need not risk any tax liability in business, if he takes registration, collects tax and remits the same irrespective of whether his turnover exceeds the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (a) does not refer to any option, but only declares the consequence that a registered dealer collecting tax under sub-section (1) of section 30 has to remit tax on the entire taxable turnover even if he is not liable to pay tax under section 6(1) of the Act by virtue of the turnover being below the taxable limit. The section does not talk about any option to be exercised, even though registration and collection of tax as pointed out by the Government Pleader itself is an option exercised by the dealer against the entitlement of immunity from payment of tax available to him under section 6(1A) of the Act by virtue of the turnover being below the taxable limit. However, the situation covered by clause (b) is something quite different be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y rejecting the request by the dealer. In other words, it is up to the State to decline the option requested for by the petitioner and deny permission to collect tax on the commodity, if the State intends to supply the commodity to the customer free of tax. In this context we notice that the proviso to section 30(3) also makes it clear that the dealer enjoying exemption in respect of a commodity has the option to collect tax which necessarily means that the officer based on application filed under rule 10A is entitled to grant it or reject it. Nowhere else in the statute there is a provision requiring a registered dealer to seek independent permission from the officer to collect tax during the year his turnover is below the nontaxable limit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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