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Informative

Showing Sales Occurred in Transits is Necessary to Justify Claim for Sales Tax Exemption: Kerala HC

Update / Judgement Date

07 Jun 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GST

The Kerala High Court dismissed M/s I.T.I. LTD's sales tax revision petition, upholding the Appellate Tribunal's denial of a concessional tax rate for Rs. 2,95,15,307/- and exemption for Rs. 5,83,33,441/- in transit sales. \r


The petitioner failed to justify the transit sales claim, as the E1 forms were accounted for in a subsequent year, not during the transit period. The court emphasized that statutory forms must evidence transit sales, and since the E1 forms pertained to sales in 2002-03, they could not support the 2001-02 transit sales. \r


The division bench, including Justices A.K. Jayasankaran Nambiar and Syam Kumar V.M., concluded that the petitioner's claim lacked merit, dismissing the petition.