20 November 2013
1. Kerala Value Added Tax assessed escaped sales turnover. Reason suspected unaccounted purchases from registered dealers only. Detected electronically on cross checking with the e filed returns of the suppliers of the goods. No other documentary or material evidence. The dealer denied these purchases. My doubt is that weather the dealer is liable merely on the basis of the information given by others. Looking for opinion with supporting information. 2. In the same case no input tax credit has been allowed for the assessed escaped sales turnover. Since corresponding purchases from the registered dealers has been certified by the Assessing authority in its assessment order, the dealer thinks that he is eligible for the corresponding input tax credit in the assessment. According to the Assessing Authority these purchases are already tax suffered in the hands of the suppliers. All purchases and sales are within the state.
20 November 2013
Just electronic cross checking is not enough. Furher additional information should be added to it It should be like proof of payment,earlier dealings with the same seller,finding of such stock in excess,or your doing of unaccounted sales etc.You can file an appeal against that order and try to prove you have not done any such purchases.ITC claim should be made by you in the returns,with supporting invoices.Without such supporting document ITC benifit can not be given.....mjk
20 November 2013
Thank you sir. The dealer availed the ITC in the return. But now I am asking about the ITC for the assessed escaped turnover. It is not possible to claim the ITC by the dealer since he denied these purchases. But regarding the Assessing authority he assessed the escaped purchases from the registered suppliers and the corresponding sales. Since he certifies this he is bound to give the corresponding credit. Otherwise these goods will suffer tax two times. I am looking for opinion and supporting information about this argument.
CAclubindia
