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Judgment
K. Vinod Chandran, J.—The above revision is by the assessee, challenging the disallowance of inter-branch transfer, amounting to Rs. 37,25,703/- and treating the same as local sales. The assessment order was passed u/s 17D of the Kerala General Sales Tax Act, 1963 (hereinafter referred to as "the Act") by the Fast Track Team and was confirmed in appeal by the Tribunal. For the assessment year 2001-02, the assessee filed returns upto December, 2001. The exemption claimed with respect to a turnover of Rs. 61,00,870/-, which included inter-branch transfers, was disallowed for the reason of absence of valid proof, such as ''F'' Forms, credit notes and debit notes, Form 25 declarations, etc. The tax rate declared was also enhanced. Since the assessee had filed return only upto December, 2001, estimation was made with respect to the turnover for the balance three months in the assessment year. After considering the objections of the assessee, accepting the claim that the business itself was stopped in December 2001, the estimation made for the three months in the year was dropped. The rate of tax as claimed by the assessee at the rate of 4% was also allowed wherever proof and certificates were produced. However, with respect to inter-branch transfer, an amount of Rs. 37,25,703/- was disallowed for the reason that the same is not supported by any evidence. The assessing authority has in a cursory manner held that the ''F'' Forms produced were those issued to the assessee and no ''F'' Forms issued from the State to which transfer is alleged to have been effected was produced.
The present revision filed before this Court deals only with respect to the turnover alleged to have been not supported by ''F'' Forms; as confirmed by the Tribunal. The Tribunal rightly noticed that ''F'' Forms were mandatory only with effect from 11.05.2002 and prior to that it was only required that the dealer establishes by sufficient evidence that the goods had moved pursuant to stock transfer, outside the State. Though ''F'' Forms were prescribed even prior to the amendment of 11.05.2002, the same was one of the mode of evidences and if the same is disbelieved by the assessing authority, it was the accepted position that the assessee could, on the strength of other evidences with respect to the transfer of goods, validly claim exemption. After the amendment in 2002, however the production of ''F'' Forms were mandatory.
The assessee, even before the appellate Tribunal, had a contention that it had produced other documents, like transfer invoices duly endorsed by the check post, before the assessing authority at the time of assessment. However, we find that there is absolutely no consideration of any documents with respect to the inter-branch transfer, by the assessing authority in Annexure-A order, except the remarks made with respect to ''F'' Forms, noticed earlier by us. Even the Tribunal accepted the fact that the inter-branch transfer as far as the relevant assessment year 2001-02 could be proved by the assessee by any reliable evidence, proving despatch of goods. However, the Tribunal, strangely in the same breath, said that since the statutory declaration, i.e, ''F'' Forms, have not been filed by the assessee, the contention requires no consideration on merits.
We have examined the records of the case, which were produced by the learned Government Pleader on directions issued by us. We find that there are documents, having the seal of the exit check post as endorsed by the check post authorities. The records reveal non-examination of the documents either by the original authority and by the Tribunal, which is the last fact finding authority. The insistence on production of lorry receipt copies cannot be given any sanctity over and above the production of ''F'' Forms, the later of which is a document prescribed under the Act. Before 2002, ''F'' Forms were not mandatory, but it cannot also be said that only on production of lorry receipts the claim would be accepted. What is required primarily is evidence as to the goods having actually gone out of the State on branch transfer as distinguished from inter-State or local sales. We are afraid, the authorities below have not examined the issue in the proper perspective. Nor is there any discussion with regard to the documents seen by us in the assessment file. We are constrained to remind the assessing authority constituted u/s 17D that the very purpose of bringing in Section 17D for speedy disposal of assessments under the KGST Act would be defeated if such cursory examination of documents are made, warranting remand at the revisional stage. It is seven years since a new enactment and a new scheme by way of Kerala Value Added Tax Act has been introduced in the State. Section 17D reflects the legislature''s anxiety in concluding the assessments under the earlier scheme. The authorities should understand the expediency; but not sacrificing the dictates of law as provided by statutes and established by precedents.
In the light of the aforesaid discussion, we direct the petitioner to appear before the concerned authority on 9.8.2012. The Fast Track Team constituted u/s 17D before completing the assessment, shall give an opportunity to the petitioner to produce necessary documents, if any, available within a period of two weeks. The petitioner also shall be afforded a personal hearing and the entire exercise shall be completed within three months from 9.8.2012. In the circumstance of the facts having been not properly looked into by either of the two authorities below, we set aside Annexure A and Annexure D orders and remand the matter to the assessing authority for de novo consideration within the time frame prescribed above. The question of law raised by the assessee does not require to be answered at this stage.
The revision is disposed of as above.