ISSUES IN ASSESSMENT OF RICE EXPORTERS

INDEX to Note regarding VAT assessments being made in the case of Rice Exporters
Column No	Summary
1.1	The department is quoting case of Khushi Ram Behari Lal for taxing closing stock which is irrelevant and not applicable. Haryana Tax Tribunal has already held in the case of KRBL Ltd that closing stock of paddy for export can not be taxed. There is no section in Punjab Vat Act, 2005 wherein closing stock of a continuing dealer can be taxed.
1.2	The department is taking stand that each year is an independent year and therefore closing stock has to be taxed. Such words are not there in the law and this intention is against the rules of interpretation. Further Indirect tax laws are different in concept from Direct Tax laws due to constitutional provisions.