TMI Blog2020 (9) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... and VAT clause flowing from entry 54 of list to schedule 7 and Article 366 (29-A) of the Constitution of India did not accept the contention of the state for the applicability of doctrine of severance with regard to the services provided to the indoor patients involving medicines supply of surgical items, stents, implants valves with or without medical procedure or medical treatment. During all the aforementioned procedure supply of oxygen is also a sine qua non. All these services are in a packaged form and have to be consumed and cannot be segregated during the course of the treatment - Thus for all intends and purpose is rightly so held to be not exegible to tax. The cumulative reading of the reasoning assigned herein above would le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en, relevant for consideration in this case, accompanied by Form 8F and 16, as required under the Kerala Value Added Tax Rules, 2005, hereinafter called '2005 Rules'. 2003 Act prohibits the person to transport within the state across or beyond notified area any consignment of goods exceeding such quantity and value as may be prescribed, by any vehicle or vessel unless he is in possession of either a Tax invoice or delivery note or certificate of ownership. 3. Mr.Raju Joseph, learned Senior Counsel, appearing on behalf of the petitioner, in support of the averments in this writ petitions, submits the relevant assessment year in the instant case is 2014-15, whereby eleven consignments spanning from March 2014 were intercepted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mandatorily required to obtain registration and file returns under this Act. Liquid Medical Oxygen has been provided to the indoor patients during the course of treatment and purchase of the same from a dealer outside the state and not registered, cannot be a ground of interception or initiation of penalty proceedings as the certificates of the exemption are still holding the field. 5. The purpose of filing the W.P.(C).No.4150/2020 was to prevent prevailing of any prejudice in the assessment proceedings till the finalisation of penalty proceedings under Section 47 and though this Court had granted interim injunction, but in the meantime, the penalty orders had already been passed, but were not communicated to the petitioner. I am, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voking section 67 as and when eventuality arises. During the course of the argument, the registration certificate issued under Section 18(C) purportedly in view of the fact that the petitioner has been granted exemption under Section 12A of the Income Tax Act. The penalty order also reveals there is likelyhood of suspected sale of the Liquid Medical Oxygen other than to the inhouse patients and therefore it is too farfetched or premature to entertain the writ petition vis-a-vis the penalty order as the petitioner has a remedy to file appeal under Section 55 of the 2003 act. The few interceptions were prior to introduction of section 18(C) with effect from 01.04.2014, but most of the consignors were post thereof. 8. In rebuttal, Mr.Raju J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act for the relevant assessment year issued by the Deputy Commissioner of Commercial Taxes under the Kerala Value Added Tax Act 2003 are not in dispute, much less the orders dated 26.02.2017 passed in kerala Value Added Tax Appeal Nos.123/2016 and 124/2016 of Deputy Commissioner of Appeals, Commercial Taxes. Operative part of the order reads as under: I have examined the contentions raised by the appellant along with the documents available in the records. The sole issue for consideration in this appeal is whether there is any attempt of evasion of tax in this case?. Here in this case, the Intercepting Officer (Intelligence Inspector) collected security deposit from the appellant for the reason that the appellant is not a registered dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stents, implants valves with or without medical procedure or medical treatment. During all the aforementioned procedure supply of oxygen is also a sine qua non . All these services are in a packaged form and have to be consumed and cannot be segregated during the course of the treatment. Thus for all intends and purpose is rightly so held to be not exegible to tax. No doubt the SLP Nos.21097/2019 and 21102/2019 against the Full Bench of the Kerala High court in Sanjose Parish Hospital is pending adjudication, but there is no interim order. Revenue collecting authorities consisting of Assessing Officers, interception staffs who are assigned to deal with the penalty proceedings cannot be permitted to adopt a pick and choose policy. The j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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