SINELAB TECHNOLOGIES [P] LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The petitioner is a Private Limited Company engaged in the manufacture and sale of LED lights etc. According to the petitioner, the Company is maintaining proper books of accounts and other records in the ordinary course of business and is submitting its returns on time. With reference to Section 42 of the Kerala Value Added Tax Act (for short 'KVAT Act'), it is submitted that every dealer whose total turn over in a year exceeds Rs.60 lakhs is bound to get its accounts audited annually by a Chartered Accountant or Cost Accountant and to submit a copy of the audited statement of accounts and certificate, in the manner prescribed. Section 42 (2) provides an opportunity to the dealer for correcting any omission or mistake detected in the annual return submitted with reference to the audited figures.

(2.) Rule 60 of the KVAT Rules prescribes the procedure for audit of accounts and certification. Rule 60 is extracted hereunder:-

(3.) It is submitted that for the year 2016-17, the petitioner had filed its returns on time and had time till December 2017 for rectification of mistakes based on the audited figures. It is pointed out that the audit with respect to the year 2016-17 was not complete at the time when return was filed and therefore, on receipt of Ext.P1 notice proposing to complete the assessment, Ext.P2 explanation was submitted, pointing out that the audit of the petitioner's books of accounts had just commenced and the verification of the transactions by the auditors are in progress and that the adjudication proceedings pursuant to Ext.P1 may be kept in abeyance till the audit is complete.