Sales Tax Appeal Nos. 1507 to 1518 of 2012. Case: H. Narayanappa Vs State of Karnataka. Karnataka Appellate Tribunal

Case NumberSales Tax Appeal Nos. 1507 to 1518 of 2012
CounselFor the Appellant: Srot. Jyoti M. Maradi, Advocate for Appellant and For the Respondent: Sri D. Devaraj, State Representative for Respondent
JudgesNiazahmed S. Dafedar, DJM and P. Puttaraju, CTM
IssueKarnataka Value Added Tax Act, 2003 - Sections 63, 3(2), 9-A
Citation2013 (77) KarLJ 318
Judgement DateJuly 31, 2013
CourtKarnataka Appellate Tribunal

Judgment:

Niazahmed S. Dafedar, DJM

  1. These twelve (12) appeals are filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (for short, 'the Ace). The same are directed against the appellate order dated 30th April, 2012 concluded by the Joint Commissioner of Commercial Taxes (Appeals-6), Bangalore (hereinafter referred to as 'the First Appellate Authority' or for short, 'FAA') in Case Nos. VAT.AP. 234 to 244/10-11. In the said impugned order, the FAA has allowed the appeals in part by modifying the orders of the Commercial Tax Officer (Audit and Recovery), Tumkur dated 22nd February, 2012 (for brevity, 'the AA').

  2. The relevant facts and grounds of the appeals in brief are stated as thus:

    (i) The appellant is a contractor engaged in the execution of works contract for Government Departments. The appellant has opted for composition.

    (ii) The appellant has been reassessed by the AA by his order dated 22nd February, 2012, wherein taxes have been levied on work-in-progress and unregistered dealer purchases.

    (iii) The AA has also disallowed deduction towards royalty paid and tax credit has not been given with respect to Tax Deducted at Source (TDS).

    (iv) Aggrieved by the same, the appellant preferred appeals before the FAA who has modified the orders of the AA after taking cognizance of the documentary proof. While doing so, the FAA has not allowed tax credit with respect to TDS effected by M/s. Tumkur Urban Development Authority (for short as 'M/s. TUDA') for the reason that the statutory Form VAT 156 is not furnished by the appellant. The FAA has allowed exemption on sub-contract works which is purely labour work, work-in-progress and deduction on royalty paid on the basis of material evidence available on records. The FAA has also decided that purchases effected from URDs to the extent of Rs. 86,52,000/- is liable for tax under Section 3(2) of the Act.

    (v) The appellant has filed these appeals only on one issue namely disallowance of tax credit so far as tax deducted at source by the TUDA.

  3. The appellant prays to issue directions to the AA to consider the letter given by TUDA for giving tax credit or to give direction to the concerned LVO to issue Form VAT 156 so that the appellant can claim tax credit towards TDS.

  4. Heard the learned Counsel and the State Representative. The common question of law and facts are involved in these twelve appeals and hence the same are clubbed together and disposed of by this common judgment.

  5. ...

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