In year of commencement of business, exemption is to be granted to dealer for taxable turnover of Rs. 10 lakh

CST & VAT : Kerala - Benefit of input tax will not be available if dealer does not disclose actual taxable turnover in return and does not pay tax
CST & VAT : Kerala - In year of commencement of business, exemption is to be granted to dealer for taxable turnover of Rs. 10 lakh
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[2014] 51 taxmann.com 271 (Kerala)
HIGH COURT OF KERALA
State of Kerala
v.
Smt. V.M. Rajalakshmi*
DR. MANJULA CHELLUR, CJ.
AND A.M. SHAFFIQUE, J.
O.T.R. NOS. 68 & 69 OF 2012
SEPTEMBER  27, 2013
Section 11, read with section 6 of the Kerala Value Added Tax Act, 2003 - Input tax credit (Elgibilty) - On scrutiny, department added unaccounted turnover which resulted in total taxable turnover of over Rs. 10 lakhs but second appellate authority granted exemption of Rs. 10 lakhs only - Dealer while filing return of taxable turnover, did not come forward to disclose actual taxable turnover in order to influence others to reach to an opinion that he paid tax in accordance with provisions of section 6(1) - Whether for reason of non-disclosure of actual taxable turnover in return and non-payment of tax, dealer could not claim input tax benefit provided under section 11(1) - Held, yes [Para 9] [In favour of revenue]
Section 6 of the Kerala Value Added Tax Act, 2003 - Levy of tax on sale or purchase of goods (Exemption) - Assessment years 2008-09 and 2009-10 - Whether where assessment year 2008-09 happened to be commencement of business, by virtue of proviso 3 to section 6(1), exemption is to be extended to dealer for first 10 lakhs taxable turnover and any excess taxable turnover needed to be assessed - Held, yes - Whether in second year of business, assessee would not be entitled for input tax benefit either under sub-section 5(n) of section 11 or under proviso 3 to section 6(1) - Held, yes [Para 11] [In favour of assessee]