FASHION GOLD INTERNATIONAL (P) LTD Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) The petitioner was a registered dealer on the rolls of the Assistant Commissioner, KVAT Special Circle, Kasargod. In the monthly return for August 2014 the petitioner disclosed local stock transfer for an amount of Rs.6,03,60,885/- and claimed exemption for the entire amount as provided under Rule 10(f) of the KVAT Rules. The department verified and found that the transaction was effected to another dealer M/s. New Fashion Gold International. Ext.P1, notice was issued to the petitioner under Section 25(1) of the KVAT intimating that the claim for exemption under Rule 10(f) cannot be accepted and the turnover shown as local stock transfer as per the return is incorrect and hence rejected and that it was proposed to complete the assessment under Section 25(1) of the KVAT Act.

(2.) The petitioner preferred Ext.P2 explanation reiterating the statement in its return that the entire business was transferred as a whole with effect from 09.08.2014, and that the petitioner is not carrying on any business activity from that date. It was admitted that there was an unavoidable delay in reporting the stoppage of business, due to the delay in getting legal advise and was not wilful. It was requested that the delay in reporting the stoppage of business may be condoned and the exemption Rule 10(f) granted.

(3.) By Ext.P4 order, the explanation offered by the petitioner was rejected and the assessment completed holding that the transaction effected by the petitioner was not a stock transfer but taxable sales.