INDIA CEMENTS LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The two revisions arise from the assessment years 2007-08 and 2008-09. The questions raised are with respect to the concessional rate of tax on sale of goods effected to the Lakshadweep Islands through a dealer authorized by the Lakshadweep Administration and the deduction permissible on damaged goods. The questions of law as available in the memorandum of revision are re-framed as follows.

(2.) We have head learned Senior Counsel K.Srikumar appearing for the revision petitioner/assessee and learned Senior Government Pleader Shamsudeen appearing for the respondent State. The learned Senior Counsel would take us through the proviso and Rule 12C to contend that there is substantial compliance. Form No.42 was produced and in lieu of shipping bills, Application to Export as made by the purchaser before the Port authorities, has also been produced; as required under Rule 12C. 2010(4) KHC 239 [ Essar Oil Ltd. v. Intelligence Officer(Investigation Branch), Palarivattom ] and that of a learned Single Judge in W.P(C) No.8022/ 2011 [Al Mahamood vs. Commercial Tax Officer ] are relied upon. It is also argued that the damage claim is only by reason of hardening of cement which occurs naturally by exposure to elements and that claim is very marginal, for both years less than 0.1% of the total sales effected. On behalf of the State it is argued that there is nothing proved as to the movement of goods to the Islands for use there. On the question of deduction on damaged goods it is pointed out that there is nothing produced before any of the authorities to prove the same.

(3.) We first extract the first proviso of Section 6(1) and Rule 12C.