(1.) EXTS.P2 and P3 notices were issued proposing completion of assessment under Section 25(1) of the Kerala Value Added Tax Act (KVAT Act), against the petitioner, with respect to the years 2008-09 and 2009-10 respectively. The assessment was proposed on the basis of an allegation that the petitioner had conceded sales turn over of 'Plastic Mat' and 'Fishing Ropes' for which he is liable to pay tax at the rate of 12.5%. Whereas, the petitioner had remitted tax with respect to 'Plastic Mat' only at 4% and claimed exemption with respect to sale of 'Fishing Ropes'.
(2.) ON receipt of Exts.P2 and P3 notices, the petitioner had submitted Exts.P4 and P5 objections. It is contended that the items sold by the petitioner is not 'Plastic Mat' but it is only 'Recycled Plastic Strips', which is falling under Entry No.118(17) of List A to the Schedule of the KVAT Act. By virtue of Ext.P1 clarification, the Commissioner of Commercial Taxes had observed that 'Plastic Mat' is not an item covered under any of the specific entries in the Schedule of KVAT Act and the same is liable to be taxed at the rate of 12.5%. The contention of the petitioner is that the item dealt with by the petitioner is a different commodity. Therefore, the objection need be considered after physical verification of the commodity in question. Since Ext.P1 clarification is binding on the respondent, the petitioner apprehends that there will not be a proper consideration of objections raised with respect to difference in the commodity.