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TMI Blog2023 (8) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... electricity' is not goods as per the definition of 'goods' provided in Section 2(xx) of the Kerala Value Added Tax Act, 2003 (for short, 'the KVAT Act'). It is submitted that though the petitioner had obtained registration under the KVAT Act and had installed the windmill in the year 2008-'09, since electricity was not a goods exingible to tax under the KVAT Act, a nil return had been furnished by him and the closing stock inventory as on 31.3.2009 was also shown as 'nil' since the firm had no other business within the State of Kerala. However, by Ext. P19, a notice under Section 25(1) of the KVAT Act was issued to the petitioner on 25.2.2014 stating that on verification of the firm's annual return, it was revealed that they had conceded total and taxable turnover as 'nil' for the year in question. It was further found that the dealer received three consignments of windmill and tower on 24.3.2008 from Puduchery, but the closing stock inventory revealed that there was no closing stock of any goods as on 31.3.2009. It was, therefore, assumed that the goods which were brought into the State, that is, the parts of the windmill and the tower were sold during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act only by way of abundant caution and that since there was no sale or purchase of goods within the State, such registration need not have been obtained by the petitioner in view of the specific language of Section 6. It is further contended that the materials produced along with Ext. P21 application for rectification and before this Court would clearly show that only one windmill had been transported into the State on the basis of Ext. P1 and that the invoices specifically referred to parts of the same windmill which had been assembled on site at Ramakkalmedu. Ext. P15 letter of the KSEB certifying that the windmill is still in working condition had also been produced along with Ext. P21 which ought to have been considered. It is submitted that additional grounds had been raised in Ext. P26, which are outside the purview of Ext. P19 notice and Ext. P20 assessment order. 5. Reliance is also placed on a decision of this Court in Shamon K.S. v. State of Kerala and others [2015 (5) KHC 318] in support of the contention that even in case there is an error in the filing of the return by the petitioner by not showing his turnover from sale of electrical energy which is admittedly non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aler to declare the turnover through monthly and annual returns as well as trading, profit and loss accounts and balance sheet. 7. It is stated in the counter affidavit that three invoices were treated on three separate invoices due to the following reasons :- "1) If the three of the above mentioned invoices were one and only the actual value, there was no need of issuing part bill as 4, 5 & 9. Only one bill would have been prepared and mentioned the fact in the invoice all such details that the consignment was only one and loaded in separate vehicles as it cannot be loaded in one vehicle. For which a declaration alone was essential. 2) Invoice No. 009/Part-4, No. 009/Part-5, 009/Part-9 can be considered only as separate invoices, otherwise no need to issue part bills. On the other hand, if they have part bills, the value of consignment under transport alone in a part bill would have been declared in the invoices (Part invoices). Being a common man without much knowledge about the technical nature of the commodity, consider the part invoices as separate over or the seller would have been issued single invoice stating the factors. Even the Accountant General while conducting A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no tax is payable, the sale of electrical energy also ought to have been disclosed by the petitioner, who is a registered dealer under the KVAT Act, in his returns as turnover which has not been done in the instant case. 10. Having considered the contentions advanced, I notice that the definition of 'goods' under Section 2(xx) of the KVAT Act is as follows :- "Goods" means, all kinds of movable property (other than newspapers, actionable claims, electricity, stocks and shares and securities) and includes live stock, all materials, commodities and articles and every kind of property (whether as goods or in some other form) involved in the execution of a works contract, and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale." Section 6, which is the charging section under the KVAT Act provides that every dealer whose total turnover for a year is not less than ten lakhs shall be liable to pay tax on his sales or purchases of goods as provided in the Act. 11. Section 25(1) of the KVAT Act as it stood at the relevant time reads as follows :- 25. Assessment of escaped turnover.-(1) ..... 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