High Court of Kerala disposed of a sales tax revision challenging an assessment order. Relying on a prior Full Bench judgment, the Court held that the clause requires considering the highest tax payable as conceded in returns/accounts or tax paid, dismissing the petition.
Sales tax revision stands dismissed against the dealer.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE S.V.BHATTI
&
THE HONOURABLE MR.JUSTICE BASANT BALAJI
WEDNESDAY, THE 3RD DAY OF AUGUST 2022 / 12TH SRAVANA, 1944
ST.REV. NO. 2 OF 2021
AGAINST THE ORDER TA 48/2018 OF AGRL.I.T.ADDITIONAL BENCH,KOZHIKODE
PETITIONER/S:
SOLAR HOTELS (P) LTD PAVARATTY, THRISSUR 680 507, (REPRESENTED BY THE DIRECTOR SRI.K.B. PADMADAS).
BY ADVS. K.N.SREEKUMARAN SRI.P.J.ANILKUMAR (A-1768) SRI.N.SANTHOSHKUMAR
RESPONDENT/S:
STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM 695 001.
BY SR GOVERNMENT PLEADER V K SHAMSUDHEEN
THIS SALES TAX REVISION HAVING COME UP FOR ADMISSION ON 03.08.2022,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
S.T.(Rev.) No.2/2021
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O R D E R
S.V. Bhatti, J.
Heard Advocate Mr K N Sreekumaran and Sr. Government
Pleader Mr Shamsudheen V K for parties.
“16. We are afraid the said argument omits to take note of the factors on which the highest turnover tax is determinable. Construed literally, the word highest is comparing all the three situations. The word ‘paid’ is in the company of words “turnover
S.T.(Rev.) No.2/2021
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tax” which means the tax permitted to be paid in the previous year at a compounded rate. The authority verifies the highest tax payable as conceded in the returns or accounts on one hand and turnover tax paid on the other hand whichever is the highest among the three, the applicable percentage viz. 115% is applied and compounded rate for the subsequent year is accepted. The construction as commended to the Court by Mr Harisankar, we are afraid, will efface the clear expression in Section 7(b), viz. highest turnover tax payable as conceded in the return/accounts. ‘Payable’ is understood in the company of the return or accounts and ‘paid’ is understood in the company of the turnover tax. By applying the rule of Noscitur-a-sociis , we hold that for the purpose of Section 7(b) the turnover tax payable by the dealer as conceded either in the return or accounts or the turnover tax paid for the previous consecutive three years is the deciding factor. So interpreted, we hold that the construction adopted by the Tribunal which reads as follows is the correct and literal construction available in the circumstances of the case.
“The State contends that TOT payable as per accounts is to be taken for calculating TOT. Respondents contention is that it is to be done on the basis of return. On a perusal of relevant provision, it is very clear that the clause applicable to this assessee is clause (b) of Sec.7. In clause (b) itself, 3 situations arise.
S.T.(Rev.) No.2/2021
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The question is answered as indicated above…..”
The principle laid down in the Full Bench since applies in all fours, the instant questions of law, by following the Full Bench,
are answered against the dealer, in favour of the Department.
S.T. Revision stands dismissed consequently.
S.V.BHATTI
JUDGE
BASANT BALAJI
JUDGE
jjj
S.T.(Rev.) No.2/2021
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APPENDIX OF ST.REV. 2/2021
| PETITIONER ANNEXURES ANNEXURE A |
TRUE COPY OF THE PERMISSION DATED 20.06.2009 IN FORM 21A OF THE KGST RULES ISSUED BY THE COMMERCIAL TAX OFFICER, CHAVAKKAD. |
|---|---|
| ANNEXURE B | TRUE COPY OF THE ASSESSMENT ORDER NO. 25181553/2009-10 DATED 23.12.2001 OF THE COMMERCIAL TAX OFFICER, CHAVAKKAD. |
| ANNEXURE C | TRUE COPY OF THE ASSESSMENT ORDER NO. 25181553/2010-11 DATED 5.7.2012 OF THE COMMERCIAL TAX OFFICER, CHAVAKKAD. |
| ANNEXURE D | TRUE COPY OF THE ASSESSMENT ORDER NO. 25181553/2010-11 DATED 5.7.2016 OF THE ASSISTANT COMMISSIONER, COMMERCIAL TAX , SPECIAL CIRCLE, THRISSUR. |
| ANNEXURE E | TRUE COPY OF THE ORDER DATED 20.1.2017 IN KVATA 1209/2016 ISSUED BY THE DEPUTY COMMISSIONER (APPEALS), COMMERCIAL TAXES, THRISSUR. |
| ANNEXURE F | TRUE COPY OF THE COMMON ORDER (IN ORIGINAL), NO. 48/2018, 49/2018, & 50/2018 DATED 28.2.2020 OF THE HONBLE KVAT TRIBUNAL, KOZHIKKODE SERVED ON THE PETITIONER ON 15.9.2020. |
| ANNEXURE G | TRUE COPY OF THE REFERENCE ORDER DATED 22.8.2019 IN OT (REV), 75/2018 AND OTHERS OF THIS HONBLE COURT. |
1 issue framed by the court
Whether the highest turnover tax for determining subsequent year liability under Section 7(3) of the KGST Act is the tax payable as conceded in return/accounts or the tax paid.
Colour shows how this judgement treated each authority
S.T. Rev. No.21/2014 dated 06.04.2022Followed¶24
1 provisions across 1 enactments
Solar Hotels (P) Ltd
State of Kerala
S.V. Bhatti
Basant Balaji
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
