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TMI Blog2020 (10) TMI 1288X X X X Extracts X X X X X X X X Extracts X X X X ..... ble on damaged goods. The questions of law as available in the memorandum of revision are re-framed as follows. 1. Whether the Tribunal was justified in conforming the rejection of the claim of concessional rate of tax on turnover of interstate sales when the assessee had substantially complied with the requirements under the first proviso of Section 6(1) of the KVAT Act and Rule 12C of the KVAT Rules? 2. Whether addition of sales turnover on assumption of sale of damaged goods is justifiable, particularly when there is no allegation of unaccounted sale or stock difference? 2. We have head learned Senior Counsel K.Srikumar appearing for the revision petitioner/assessee and learned Senior Government Pleader Shamsudeen appearing for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng exemption or reduction in rates of tax. - (1) Every dealer who makes any sale to the Administrator, Union Territory of Lakshadweep, Laccadive Cooperative marketing Federation, Kozhikode or the Lakshadweep Harbour Works or any registered dealer certified by the Administrator, Union Territory of Lakshadweep under the proviso to sub-section (1) of section 6 shall obtain 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 and file a copy each of the same along with the return filed under Rule 22. The originals shall be retained by the dealer and shall be provided on demand by any authority under the Act. Read together the concess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1). It was found that the dealer has to satisfy the twin requirements of furnishing a declaration in Form No.42 duly signed by the buyer and producing a copy of the shipping bill or other similar document, evidencing the transportation of the goods to the Islands. It was the specific finding that since the dealer effects supplies to the Lakshadweep Administration itself that too in the main land, the requirement of production of a copy of a shipping bill duly attested by the Port authorities is not necessary. Especially since it cannot be fulfilled by the supplying dealer, who is not involved in the transportation of the goods to the Islands. 5. We are unable to agree with the said proposition even if the sale is directly to the Lakshadwe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade directly to the Administration, we do not think that there can be such a benefit conferred judicially. We hence do not subscribe to the view expressed and the dictum laid down in Al Mahamood. 6. The other decision relied upon is that of a Division Bench almost on similar facts, but, however, the concession being granted under a notification, the terms of which are slightly different. Therein the Schedule to the notification provided for sale to the very same entities as available in the first proviso to Section 6(1), being entitled to the concession "subject to the condition that such dealer shall utilise the concession only for such goods intended for the use in the UT of Lakshadweep"(sic). The Division Bench found that the declaratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital in Form No.42 that the purchasing dealer is recognized by the Administrator, UT of Lakshadweep, there is nothing produced to evidence the same. We do not think there can be any concessional rate claimed by the revision petitioner on the facts of these years since there is no document produced which could prove the movement of goods to the Islands, as would a shipping bill. The first question raised by the assessee is answered against the assessee and in favour of the revenue. 8. The next question is with respect to the allowance claimed on the damaged goods. Despite the stock details having been tabulated in the Annexures produced before us, as the learned Government Pleader alertly points out, the claim was not substantiated with rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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