KVAT: Shipping Document Required for Concessional Rate to Lakshadweep Supplies

AL-Mahamood Vs Commercial Tax Officer (Kerala High Court)

Kerala High Court dismissed the writ petition holding that furnishing of shipping document or best evidence is must in respect of supplies made to the Union Territory of Lakshadweep for the purpose of availing concessional rate of tax @4% under proviso to section 6(1) of the KVAT Act.

Facts-

The petitioner has approached this Court in this writ petition for a direction to the 3^rd respondent to furnish the shipping document or best evidence in respect of the supplies made by the petitioner to the Union Territory of Lakshadweep Administration for the purpose of availing concessional rate of tax @ 4% under proviso to Section 6(1) of the KVAT Act. In the alternative, the petitioner had prayed for a direction to the 3^rd respondent to pay the amount of tax concession availed by the 3^rd respondent along with interest by virtue of declaration in Form 41 and the provisions in Section 6 (1) read with 12C of the KVAT Act and the Rules made thereunder.

According to the petitioner, the petitioner had sold various items to the Union Territory of Lakshadweep Administration and therefore, he is entitled to reduction in levying of tax @ 4% under KVAT Act on condition of filing necessary declaration from the Administrator, Union Territory of Lakshadweep as per Section 6(1) read with Rule 12C (1) of the KVAT Rules.

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