TMI Blog2023 (6) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... pression of relevant information, failure to furnish such information demanded etc. It can be seen therefore that sub clause (iv) of Section 8(f) uses the phrase 'shifting of place of business' along with other phrases such as 'furnishing of false information', 'suppression of relevant information' etc. to denote those reasons which are treated as valid and sufficient by the Statute for the purposes of cancellation of a permission already granted. It is a settled principle of interpretation of statutes that the true scope and ambit of a phrase used in a statute must be gathered from the other words/phrases which are used along with it in the statutory provision. The principle of noscitur a sociis is a rule of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready granted was illegal and unreasonable, and hence, liable to be set aside. The O.T. Revision is allowed. - O.T.REV NO.130 OF 2017 - - - Dated:- 13-6-2023 - HONOURABLE MR. JUSTICE A.K. JAYASANKARAN NAMBIAR AND HONOURABLE MR. JUSTICE MOHAMMED NIAS C.P. For The Appellant : By Adv. Sri. Harisankar V. Menon, By Adv. Smt. Meera V. Menon For The Respondent : By Smt. M.M. Jasmine, Govt. Pleader ORDER A.K. Jayasankaran Nambiar, J. In this O.T. Revision, the petitioner impugns the order dated 30.5.2017 of the Kerala Value Added Tax Appellate Tribunal, Ernakulam in T.A.(VAT). No. 52/2016. The brief facts necessary for disposal of this revision are as follows: The petitioner is a partnership firm engaged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards that end, applied for and obtained the necessary permission from the Assessing Authority on 21.5.2015 [Annexure-H]. The returns for the months in which trade was conducted were also filed and tax paid on compounded basis thereunder. 4. By Annexure-J notice, the petitioner was asked to show cause as to why the permission granted to it for payment of tax on compounded basis should not be cancelled since, according to the Assessing Authority, the petitioner had shifted its business to new premises with effect from 17.8.2015. The said date coincides with the date on which the showroom of the petitioner was formally inaugurated after renovation/refurbishment works. While the petitioner preferred a reply to the notice, the Assessing A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the renovated/refurbished premises was held in August, 2015, it did not follow that no business was conducted in the premises till then. He also points out that even in the Section 6 assessment order that was passed by the Assessing Officer for the year 2015-16, pursuant to the cancellation of the permission to pay tax on compounded basis, the Assessing Officer relies upon the turnover for the months from April to August, 2015, and attributes the said turnover to sales effected from the new business premises that was formally inaugurated after renovation only in August, 2015. According to the learned counsel, the admission by the Assessing Officer in the assessment order passed under Section 6 of the KVAT Act, for the year 2015-16, belies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to furnish such information demanded etc. It can be seen therefore that sub clause (iv) of Section 8(f) uses the phrase 'shifting of place of business' along with other phrases such as 'furnishing of false information', 'suppression of relevant information' etc. to denote those reasons which are treated as valid and sufficient by the Statute for the purposes of cancellation of a permission already granted. It is a settled principle of interpretation of statutes that the true scope and ambit of a phrase used in a statute must be gathered from the other words/phrases which are used along with it in the statutory provision. The principle of noscitur a sociis is a rule of interpretation that stipulates that where the ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration certificate issued to the petitioner by incorporating therein the new business address as early as in March, 2015, presumably pursuant to an inspection of the new premises as mandated by the statute, the mere shifting of business place simpliciter and with the knowledge of the Assessing Officer will not attract the penal provisions under the KVAT Act. 9. It is also significant that neither the Assessing Authority nor the Tribunal found that there was any suppression of turnover on the part of the petitioner or any deliberate furnishing of false information to the Department. In the absence of any of those factors, it was incumbent upon the Assessing Authority/Tribunal to demonstrate how the mere shifting of business place of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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