ERNAD LATEX Vs. STATE OF KERALA

JUDGEMENT

(1.) The revision petitioner is the assesee who is aggrieved with the order of the Tribunal produced at Annexure G. The questions of law framed are re-framed as follows:

(2.) The brief facts to be noticed are that the assessee, a dealer in rubber for the assessment year 2007-08 paid tax on purchase of rubber and claimed input tax on its sale. Annexure A notification, SRO No.804/08 dated 31.07.2008 came into force in August 2008. An assessee was entitled to claim exemption from payment of tax on its inter-state trade or commerce of natural rubber in the event of the assessee having paid tax under the KVAT Act. The assessee claimed exemption from August, 2008 onwards.

(3.) The Intelligence Officer on the basis of details of transaction effected by the assessee for the year 2008-09 found that the assessee had not paid tax on its purchase. The assessee had purchased natural rubber and other goods from the registered dealer on payment of tax coming to Rs.4,98,288/-. The entire amount was claimed as input tax credit under the KVAT Act. Hence there was no sufferance of tax on its purchase. The exemption claimed was for a total turnover of Rs.3,61,92,304/-. The tax payable on the said turnover under the CST Act was Rs.7,23,846/-. The Intelligence Officer found evasion of tax insofar as the CST Act and imposed penalty at twice the amount of tax evaded.