TMI Blog2021 (10) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... Added Tax. We refuse to sit as a super legislature to weigh the wisdom of requirements in proviso to Section 6(1) or Rule 12C. Courts normally refuse to examine the wisdom of expression of legislature/executive in tax, categories of taxes, rate of taxes, person who are brought under the tax purview etc. As it is said, words are the framework of concept or policy of Legislature/Government and the fact is that the concept or policy could change more quickly than the words. The dealer had a choice whether to sell at the regular/applicable rate or claim a concessional rate of tax. The dealer chooses to sell the goods at concessional tariff and collects tax as applicable to the sale, therefore, the dealer is expected to comply with other requirements prescribed under the Rule for claiming concessional rate of tax. The dealer having sold the goods at concessional rate of tax, cannot be heard to challenge the very prescription as impossible of performance, ineffective in practice etc. In the process of interpretation or application, relevant expression chosen by the legislature or the executive ought not to be ignored or diluted. The case of dealer if accepted, the same would result ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for filing shipping documents or similar documents, to wit to claim concessional rate of tax for the sales made in favour of the Administrator of Lakshadweep Union Territory etc. The Assessing Officer, through the orders impugned in the writ petition, rejected the claim of dealer for concessional rate of levy and collection of tax for the sales made in favour of Lakshadweep Administration. The case of respondents is that the dealer, in compliance with the requirement of Rule 12C, has furnished Form No.42 however for want of proof of other requirements prescribed in Rule 12C, namely, shipping bill or similar document duly attested by the port authorities, the concessional rate of tax applicable to sales made in favour of Lakshadweep Administration has been rejected. 3. The case of Revenue is that for a dealer to avail concessional rate of tax applicable under the Act, the dealer must conform to the requirements of proviso to Section 6(1) of the Act read with Rule 12C of the Rules. The concessional rate could be accorded only, firstly, upon the sale of goods in favour of one or the other named authority in the proviso to section 6 and further upon complying with all the requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcerpt the operative portion hereunder: 5. We are unable to agree with the said proposition even if the sale is directly to the Lakshadweep Administration; which herein is not the case. The sale invites the concessional rate as per the proviso only if it is made to the Administrator, the Marketing Federation, Harbour Works or registered dealers certified by the Administrator, on conditions prescribed in Rule 12C. Rule 12C provides for Form No.42, a declaration from the buyer and a copy of the shipping bill or similar document, attested by the Port authorities to be produced. The prescription made does not permit the different category of purchasers to be treated differently; even if it is the Administration itself. The intention as discernible from the statutory provision as also the Rule is that a concession be granted for the goods which will eventually be utilised in the Islands. It is to ensure the utilisation that the shipping bill, or a similar document is directed to be produced along with the declaration as per Rule 12C. The prescription is also to ensure that the goods purchased by availing the concessional rate are then, not sold within the State of Kerala; thus def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Lakshadweep Harbour Works and registered dealers certified by the Administrator, Union Territory of Lakshadweep, the tax payable shall be 4%, subject to conditions as may be prescribed. The proviso, in terms, restricts the classes of buyers in whose favour the sale at concessional rate of tax could be made and concessional rate claimed. Apart from a few authorities/legal entities, the other class relates to dealers certified by the Administrator. In spite of complying with the statutory requirement of sale in favour of specialized entity, such sale automatically does not entail the concessional rate of tax. The concessional rate of tax is applicable upon complying with the requirements prescribed by Rule 12C. Rule 12C prescribes that to avail concessional rate of tax, the sale firstly shall be in favour of the identities referred to above, and secondly, that a declaration in Form No.42 duly signed and sealed by the buyer along with the copy of the shipping bill or similar document duly attested by the port authorities are obtained and the dealer files a copy of each of the documents along with return filed under Rule 22. The Rule obligates the dealer firstly to obtain a signed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in words would also change. But through our construction, it shall not appear that we change the meaning of words framed on concept or policy of the Government. The Legislature has a wide latitude in the matter of choice of persons, things and applicable requirements for extending concessional rate of tax. The Legislature/Government is the best Judge of these matters. As Courts, we construct the Statute/Rule and apply the facts in issue. 6.2 The dealer had a choice whether to sell at the regular/applicable rate or claim a concessional rate of tax. The dealer chooses to sell the goods at concessional tariff and collects tax as applicable to the sale, therefore, the dealer is expected to comply with other requirements prescribed under the Rule for claiming concessional rate of tax. The dealer having sold the goods at concessional rate of tax, cannot be heard to challenge the very prescription as impossible of performance, ineffective in practice etc. The concessional rate of tax, firstly, is attracted when the sale is effected in favour of named identities, secondly, the obligation is fastened on the dealer to secure documents in proof of shipment etc, from the buyer for claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, ought to be made available by the buyer to the seller/dealer. 6.4 Hence, for the said purpose we grant liberty to dealers, in these cases, to represent to the Administrator, Union Territory of Lakshadweep or the buyer under respective invoices, by enclosing a copy of this judgment to furnish copies of shipping bills or similar documents duly attested by port authorities evidencing shipment of goods covered by respective invoices, within four weeks from the date of receipt of a copy of the judgment. Upon such request being received, the Administrator, Union Territory of Lakshadweep, the Administrator/buyer as the case may be, shall verify and furnish the best of evidence available in this behalf of shipment of goods to Lakshadweep within eight weeks from the date of receipt of the request from the writ petitioners/dealers. Thereafter, the dealer is given liberty to place the said proof before the Assessing Officer. The Assessing Officer shall reassess and pass orders by adverting to the documents now produced by the dealer in accordance with law. In cases where the dealer has already furnished declaration in Form No.42 and utilisation certificate by authority from Union Terr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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