TMI Blog2018 (6) TMI 1704X X X X Extracts X X X X X X X X Extracts X X X X ..... regime to regular tax payment, there is an enabling provision under Rule 12 of the Kerala Value Added Tax Rules, 2005. An assessee, who is under the presumptive regime is to make an application pointing out his intention to changeover and from that time onward the assessee is entitled to input tax credit. Even when such changeover is allowed in the course of an year, the presumptive tax paid before the changeover is not entitled to input tax credit. The procedural mandate distinguishes input tax credit allowable under Section 11 from special rebate deductible under Section 12. The claim under Section 11 has to be supported by invoices; which in the instance of best judgment were suppressed and later detected. While input tax is a claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the business premises was conducted and a shop inspection report prepared. The assessee accepted the offence and compounded the same. In the assessment proceedings for the purpose of best judgment assessment the crime file was taken note of. The suppression detected with respect to the unaccounted sales as discernible from the SIR was added to the total turnover. An equal amount was added to cover up the probable suppression that could have been carried out by the assessee. On the basis of the additions made, the purchase turnover was computed at 80% of the additions made for suppression. 3. We are not concerned with the quantum additions made, which have led to some modification at the First Appellate and Tribunal stage. We are o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r making purchases and selling the entire quantity in a month would show the purchase tax liability and the tax payable on sale in the returns. However, he does not have the liability to pay both, since the net tax payable would be the total tax payable on sale and on purchase minus the tax payable on purchase. This is a circumstance very much in contemplation and there cannot be any undue significance given to the words 'tax paid'. 6. The attempt of the learned Government Pleader is to argue that when suppression is detected and additions are made on that account, the assessee had not offered for tax any purchase on which tax is shown as paid in the returns and in such circumstances there could be no rebate granted under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 11 of the Act of 2003. In the case of persons, who switch over from the presumptive regime to regular tax payment, there is an enabling provision under Rule 12 of the Kerala Value Added Tax Rules, 2005. An assessee, who is under the presumptive regime is to make an application pointing out his intention to changeover and from that time onward the assessee is entitled to input tax credit. Even when such changeover is allowed in the course of an year, the presumptive tax paid before the changeover is not entitled to input tax credit. The dictum anchors on the specific prohibition, in granting input tax credit, to presumptive dealers for the presumptive tax paid and there can be no analogy drawn when there is no such prohibition a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchase, the levy and collection of tax on the value addition at the subsequent sale and ensures such levy and collection at the point of any subsequent sale too. It constitutes a chain and any break would result in chaos. Hence the stipulations that the claim should be made with reference to the return period and the quantum should be determinable from the books of accounts should be strictly complied with. 9. xxx x xxx The Scheme of the act as noticed above would require the input tax credit to be claimed along with the return, supported by tax suffered invoices and the quantum of eligible credit being determinable as reflected from the books of accounts. The assessee has admittedly not disclosed the transaction in his books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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