Holding that a foolproof method was essential to prevent tax evasion at check posts, a Division Bench of the Kerala High Court has directed the Taxes Department to take steps to collect taxes from dealers of live chicken by conducting random checking on border check posts. The Bench comprising Justice Thottathil B. Radhakrishan and Justice Babu Mathew P. Joseph ordered that the Commercial Taxes Commissioner’s proposal to install more weighing bridges on all check posts be implemented. The court made the observations while disposing of a case relating to the lack of weighing bridges on border check posts.
The Bench pointed out that the total revenue generated by way of value-added tax (VAT) during the year ending March 31, 2013, from chicken dealers came to Rs.114.05 crore. If the VAT amounted to such a whopping sums, there was no reason why the State government should find ways and means to provide weighing bridges at all entry points to the State and prevented tax evasion.
The government had submitted that unless the transport of major quantity of goods was diverted through the check posts where weighing bridges had been installed, the department would not be able to check the correctness of the entries of dealers and prevent tax evasion. The department had taken steps to install weighing bridges at Kumali, Kambumettu, and Bodimettu. The court observed that some methods had to be in place to do random checking.
