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TMI Blog2011 (9) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the tax revision case filed by the assessee is whether the Tribunal was justified in confirming disallowance of input tax credit claimed on opening stock held on the first day of the assessment year 2005-06. We have heard learned counsel appearing for the petitioner/assessee and learned Government Pleader appearing for the respondent, and have gone through the orders of the lower authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it on sales tax paid on opening stock is that it should be passed on to the consumers or the dealers to whom goods are sold. However, if the credit of input tax availed of on the opening stock is not passed on as above, then such amount will be demanded as if it is reverse tax in terms of the second proviso to section 11(13) of the Kerala Value Added Tax Act. In the course of assessment for 2005- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conceded profit itself for the month of April, 2005 was 4.46 per cent. The assessing officer noticed that for subsequent months rate of profit came down much lower than this, which is without any explanation. The conclusion, after verifying the audit statement filed in Form 25A and after analysing the sales accounted for April and subsequent periods is that the assessee in fact did not pass on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ening stock was demanded as reverse tax due under sub-section (7) of section 11 of the Kerala Value Added Tax Act. It is this order which is confirmed in two level appeals by the Deputy Commissioner (Appeals) and by the Tribunal. After hearing both sides what we notice is that the findings based on which disallowance was confirmed by the Tribunal are only on findings of fact based on accounts and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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