Sales Tax Appeal No. 2046 to 2049 of 2011. Case: Uttam Chan Somani Vs State of Karnataka. Karnataka Appellate Tribunal

Case NumberSales Tax Appeal No. 2046 to 2049 of 2011
CounselFor Appellant: M/s. Kamath and Kamath, Advocates and For Respondent: Sri R.C. Yadavannavar, State Representative
JudgesNiazahmed S. Dafedar, DJM and P. Puttaraju, CTM
IssueKarnataka Value Added Tax Act, 2003 - Sections 70(1), 62(1); Karnataka Value Added Tax Rules, 2005 - Rules 38, 153(1)
Citation2013 (76) KarLJ 550
Judgement DateJune 14, 2013
CourtKarnataka Appellate Tribunal

Judgment:

Niazahmed S. Dafedar, DJM

  1. These four appeals are filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (hereinafter referred as 'the Act') contesting the common appeal order passed by the Joint Commissioner of Commercial Taxes (Appeals), Davanagere (for short, 'the FAA'), dated 30th July, 2011 in Case Nos. KVAT.AP.255 to 258/2010-11, wherein, the FAA has upheld the reassessment orders dated 9-4-2010 concluded under Section 39(1) of the Act by the Deputy Commissioner of Commercial Taxes (Audit), Davanagere (for short, 'the AA') for the tax periods of April 5th, June 5th, October 5th and March 6th. Further the FAA has also upheld the levy of penalty and interest imposed by the AA under the relevant sections of the Act.

  2. The brief facts of the case and grounds are stated as thus:

    (i) The appellant is a registered dealer under the provisions of the Act engaged in the business of manufacturing, processing and selling of granite blocks and slabs. These goods are purchased from other registered dealers within the State who have charged the tax on such goods. The selling dealers are also registered under the Act.

    (ii) The AA has denied the Input Tax Credit OPT) with respect to three dealers namely M/s. R.S. Enterprises, Dothihal for the months of April and June 2005, M/s. Pampapathi Traders, Ilkal for the tax period of October 2005 and M/s. S.B. Enterprises, Berur for the tax period of March 2006. IPT so denied for the aforesaid tax periods is at Rs. 2,635/for April 2005, Rs. 4,734/- for June 2005, Rs. 5188 for October, 2005 and Rs. 11,372/- for March 2006. This denial is based on the ground that the selling dealers have not declared sales in their Form VAT 100. Hence by invoking Section 70 of the Act, IPT has been denied.

    (iii) The second issue is with regard to short declaration of purchases in Form VAT 100 vis-a-vis the trading account for the year ending 31-3-2006. This short declaration is to the extent of Rs. 54,156/- which has been subjected to tax by converting the same into sales by adding G.P. and treating the same as sale of granite blocks. This short declaration is considered for tax period of March 2006.

    (iv) The third issue is with respect to the freight charges disclosed in trading account at Rs. 24,069/-. Even though AA has observed that the same pertains to purchases still tax is levied on the same by deciding that such freight charges are not disclosed in Form VAT 100. This component is considered for...

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