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TMI Blog2023 (11) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... O.T. Revisions, they are taken up together for consideration and disposed by this common judgment. 2. These O.T. Revisions relate to the assessments under the Kerala Value Added Tax Act/Central Sales Tax Act [KVAT Act/CST Act] for the assessment years 2009-10, 2010-11, 2011-12 and 2012-13 respectively. The petitioners are dealers of rubber and registered as such under the KVAT Act and CST Act. They purchase raw rubber from registered dealers and also from growers and sells the same to registered dealers in the State as also to dealers outside the State by way of inter-state sales. It is not in dispute that the petitioners were entitled to avail input tax credit under Section 11 or special rebate under Section 12 of the KVAT Act in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpted from tax, input tax credit under this section shall be limited to the amount of input tax paid in excess of five per cent on the purchase turnover of such goods sent outside the State. Section 12(1): Provided also that where the goods in respect of which tax under sub section (2) of section 6 or under section 3 of the Kerala Tax on Entry of Goods into Local Areas Act, 1994 has been paid, are sent outside the State or used in the manufacture of goods and the same are sent outside the State, otherwise than by way of sale in the course of inter-state trade or export or where the sale in the course of interstate trade is exempted from tax, the special rebate under this section shall be limited to the amount of such tax paid in exces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xures-I and II notifications was merely optional and could not be viewed as mandatory. 4. Although the petitioners carried the matter in appeal before the First Appellate Authority, they were not successful. In a further appeal before the Appellate Tribunal, the petitioners contended that by virtue of Annexure-VII notification that was issued in 2019 and had clarified that Annexures-I and II notifications were optional and that the said treatment of those notifications had to be with retrospective effect to cover the periods covered by these O.T. Revisions, the petitioners could avail input tax credit despite the payment of CST on inter-state sales. The Appellate Tribunal found force in the said contention of the petitioners and allowed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in dismissing the appeal filed by the petitioner against Annexure-V order of the Dy. Commissioner (Appeals)-I, Kozhikode upholding Annexure-IV order of the Asst. Commissioner (Assessment), Special Circle-II, Kozhikode? B. After having observed, "By virtue of notification bearing No. 521/19 dated 07.08.2019 a proviso has been added to the notification hearing SRO No. 753/11, which says that, provided that this notification shall be optional to those who continue to pay tax under sub section (1) of section 8 of Central Sales Tax Act, 1956 (Central Act 74 of 1956) for the period from 31st day of July 2008 upto and including 30th June 2017" is the Hon'ble Appellate Tribunal justified in its finding that the dealers engaged in inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2011 as amended by notification S.R.O. 521/2019 correct according to the settled rules of interpretation of statutes? 6. We have heard Sri. S. Anil Kumar, the learned counsel for the petitioners in all these O.T. Revisions and Sri. V.K. Shamsudeen, the learned senior Government Pleader appearing on behalf of the respondent State. 7. On a consideration of the rival submissions, we are of the view that while the contention of the petitioners, relying on the provisions of Section 11/Section 12 of the KVAT Act, may appear persuasive at first blush, on a closer scrutiny of the statutory provisions, we find ourselves unable to accept the said contention. The exemption envisaged in Annexures-I and II notifications has to be seen in the context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT Act. The petitioners were therefore not entitled to avail input tax credit of the tax paid on purchases of rubber within the State so long as Annexures-I and II notifications were in force and operational. The amendments to the said notifications in 2019, with retrospective effect, only enable those who had paid CST in terms of Section 8(1) of the CST Act to adjust the said payments towards the demands served on them consequent to the disallowance of the input tax credit/special rebate availed by them. We therefore find that the impugned order of the Tribunal which grants the petitioners the limited relief aforesaid does not require modification or interdiction in our hands. These O.T. Revisions are therefore disposed by answering the q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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