Sales Tax Appeal Nos. 89 to 135 of 2012 [C.H.-3]. Case: Centum Electronics Limited (Earlier Solectron Centum Electronics Limited) Vs State of Karnataka. Karnataka Appellate Tribunal

Case NumberSales Tax Appeal Nos. 89 to 135 of 2012 [C.H.-3]
CounselFor Appellant: Sri V.S. Arbatti, Advocate and For Respondents: Sri D. Devaraj, State Representative
JudgesNiazahmed S. Dafedar, DJM and P. Puttaraju, CTM
IssueCentral Sales Tax Act, 1956 - Sections 8, 8(2), 8(5), 9, 9(2), 9A; General Clauses Act 1897 - Section 21; Karnataka Sales Tax Act, 1957 - Sections 35, 8A; Karnataka Value Added Tax Act, 2003 - Sections 38, 39(1), 47, 47(3), 5, 63, 63-A
Citation2013 (77) KarLJ 127
Judgement DateAugust 13, 2013
CourtKarnataka Appellate Tribunal

Judgment:

P. Puttaraju, CTM

  1. These forty-seven (47) appeals are filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (for short, 'the Act'). The same are directed against the appeal order passed by the Joint Commissioner of Commercial Taxes (Appeals-5), Bangalore (for short, as 'FAA') in Case Nos. VAT:AP:732 to 767/09-10 and CST:AP:159 to 169/09-10, dated 28-1-2012. The FAA has upheld the reassessment orders concluded under the Central Sales Tax Act, 1956 (for short, 'CST Act' or 'Central Act') by the Assistant Commissioner of Commercial Taxes (Audit-57), DVO-5, Bangalore (for short, as 'AA') for the tax periods of 2005-2006, 2006-2007 and 2007-2008 vide orders dated 8-4-2009 and 24-8-2009 concluded under Section 9(2) of the CST Act as well as reassessment and forfeiture proceedings concluded under Section 39(1) and Section 47 of the Act. The FAA has also upheld the orders concluded by the AA under Section 47(3) of the KVAT Act forfeiting the excess tax collected. Even though, the first appeal under CST Act is only eleven (11) appeals and six (06) appeals under the KVAT Act, the appellant has filed thirty-six (36) appeals before this Tribunal, since the matters are interconnected with all the tax periods so far as law and facts are concerned because of input tax rebate carry forward done by the appellant in view of the refund claims made by him under both the Acts. The STAs bearing STA Nos. 89 to 124 of 2012 (36 appeals) are related to the KVAT Act, whereas, STAs bearing No. 125 to 135 of 2012 (11 appeals) are related to the Central Act. The Interim Applications I.A. Nos. I and II are related to the dispensation of the production of original impugned orders in view of the fact that the original appeal order and reassessment orders have been filed for the twelve tax periods of 2005-2006, whereas the copies are filed for the remaining tax periods under appeal under both the Acts. The same has been accepted by the Bench by disposing I.A. Nos. I and II while admitting the appeals on 13th February, 2012. The appellant has been granted stay by disposing of two more interim applications i.e., I.A. Nos. III and IV on 13th February, 2012 only following the directions given by the Hon'ble High Court of Karnataka in its judgment dated 8th July, 2009 in Writ Petition Nos. 18542 to 18545 of 2009 (T-RES).

  2. The relevant facts and grounds Leading to these appeals in brief under KVAT Act, 2003 and the CST Act, 1956 are stated thus:

    (i) The appellant is a company incorporated under the Companies Act, 1956 engaged inter alia in the business of manufacture and sale of 'Hybrid Micro Circuits' and a dealer registered under the KVAT Act and the CST Act.

    (ii) The appellant has been granted eligibility certificate under the Information Technology Policy, 1997. The relevant notifications issued under the KST Act, 1957 and CST Act, 1956 are Notifications bearing No. FD 57 CSL 97(I), dated 21-8-1997 and FD 57 CSL 97(II), dated 21-8-1997 respectively. After the introduction of the Karnataka Value Added Tax Act 2003, the Government of Karnataka in order to continue the incentives and concessions provided to the existing industrial units falling under various industrial policies including the information technology policy has issued notifications under KVAT Act, 2003 vide Notifications No. FD 56 CSL 2005 (1, 2 and 3), dated 18th April, 2005 and Notification No. FD 56 CSL 2005 (4 and 5), dated 18th April, 2005 under CST Act, 1956 to continue the unavailed tax exemptions and deferment to eligible units subjected to conditions and restrictions prescribed therein. The appellant submits that the entitlement certificate is also issued in this regard by the concerned Joint Commissioner of Commercial Taxes (JCCT) (Admn.), Bangalore Division, Bangalore. This entitlement certificate is issued by virtue of powers vested with JCCT under Notification No. FD 56 CSL 2005 (1), dated 18-4-2005. This particular notification is issued for the new industrial units who were availing the benefit of tax exemption by virtue of notifications issued earlier under KST Act, 1957. Corresponding to the Notification No. FD 56 CSL 2005 (1), dated 18-4-2005 issued under KVAT Act for the new industrial units availing tax exemption under various industrial policies including the information technology policy under which the appellant is entitled for tax exemption, the notification has been issued under CST Act, 1956 bearing No. FD 56 CSL 2005(4), dated 18-4-2005.

    (iii) Originally, the appellant had been assessed to tax under Section 38 of the KVAT Act, 2003 in terms of Notification No. FD 56 CSL 2005 (1), dated 18-4-2005 on 2nd November, 2007 under KVAT Act and assessed under CST Act on 18-1-2008 for the year 2005-2006 and on 14-3-2008 for the year 2006-2007. This assessment has been subjected to revision under Section 63-A of the KVAT Act by the Joint Commissioner of Commercial Taxes (Admn.), DVO-5, Bangalore on 20-10-2008 and the appellant had carried the revision matter before this Tribunal vide STA Nos. 225 to 228 of 2009. Meanwhile, the AA concluded the reassessment orders under the CST Act as well as KVAT Act by orders dated 8-4-2009 and 24-8-2009 before the disposal of the case by the Tribunal. Hence, this Tribunal has dismissed the appeals under STA Nos. 225 to 228 of 2009 by order dated 28-6-2010 in view of the fact that the AA has already passed fresh orders under the KVAT and CST Acts on 8-4-2009 and 24-8-2009. In this background, the appellant filed Misc. application in ST(MISC) Nos. 20-22 and 7/2010 to consider the appeal on merits and the Tribunal directed the concerned Joint Commissioner of Commercial Taxes (Appeals) to dispose of the said appeals filed by the appellant on merits without being influenced by the directions issued by the Revisional Authority by his order under Section 63-A of the Act dated 20-10-2008 by its judgment dated 20th January, 2011. At this juncture, the appellant had filed appeals before the FAA and these appeals were pending before the FAA challenging the reassessment orders concluded by the AA by orders dated 8-4-2009 and 24-8-2009.

    (iv) The FAA by his common appeal order dated 28th January, 2012 has dismissed the appeals preferred under the KVAT Act (VAT.AP Nos. 732 to 767/2009-10 and CST.AP. 159 to 169/2009-10 cited supra in the first para) which are under consideration in these 47 appeals pending before us. The appellant has...

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