Full Judgment
-1-
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 30TH DAY OF MAY, 2024 PRESENT THE HON'BLE MR JUSTICE S G PANDIT AND THE HON'BLE MR JUSTICE G BASAVARAJA WRIT APPEAL NO.6167 OF 2010 (T-RES) C/W WRIT APPEAL NO.30498 OF 2012(T-RES) WRIT APPEAL NO.30500 OF 2012(T-RES) WRIT APPEAL NO.30636 OF 2012(T-RES) WRIT APPEAL NO.30637 OF 2012(T-RES) WRIT APPEAL NO.30638 OF 2012(T-RES) WRIT APPEAL NO.30888 OF 2012(T-RES) WRIT APPEAL NO.30889 OF 2012(T-RES) WRIT APPEAL NO.31269 OF 2013(T-RES)
IN WRIT APPEAL NO.6167 OF 2010
1. THE STATE OF KARNATAKA BY ITS FINANCE SECRETARY, VIDHANA SOUDHA, BANGALORE - 01.
2. THE LOCAL VAT OFFICER - 420 JAGADISH TR COMMERCIAL TAX BUILDING, BAGALKOT. Digitally signed by JAGADISH T R Location: HIGH COURT OF KARNATAKA DHARWAD BENCH
M/S BILWA CONSTRUCTION REP BY ITS PARTNER SANJAY S/O. SHRI GOPAL MALPANI, AGE. 39 YEARS, OCC. CONTRACTOR, R/O. BAGALKOT. …RESPONDENT (BY SRI. N.P. VIVEKMEHTA, ADVOCATE FOR SRI. ATUL K. ALUR, ADVOCATE) -2- THIS WRIT APPEAL FILED U/S.4 OF THE KARNATAKA HIGH
COURT ACT, 1961, PRAYING TO, SET ASIDE THE ORDER
DATED:22/04/2009 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.14001/2008(TAX) BY ALLOWING THIS WRIT APPEAL. IN WRIT APPEAL NO.30498 OF 2012
1. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE, BY ITS SECRETARY, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE-01.
2. COMMERCIAL TAX OFFICER, COMMERCIAL TAXES IN KARNATAKA, VANIJYA TERIGE KARYALAYA, GANDHINAGAR, BANGALORE-09. G.K. BHUTALI, AGE: 42 YEARS, OCC: ENGINEER & CLASS-I CONTRACTOR, VIKRAMPUR EXT.ATHANI, TQ: ATHANI, DIST: BELGAUM. …RESPONDENT (RESPONDENT SERVED)
COURT ACT, 1961 PRAYING TO, SET ASIDE THE ORDER
DATED:12/09/2011 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.60449/2010(TAX) BY ALLOWING THIS APPEAL & ETC., IN WRIT APPEAL NO.30500 OF 2012
1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (ENFORCEMENT-II), TQ. GANGAVATHI, DIST: KOPPAL. -3-
2. COMMISSIONER OF COMMERCIAL TAXES, KARNATAKA VTK-I, GANDHINAGAR, BANGALORE-09.
3. STATE OF KARNATAKA BY ITS SECRETARY, FINANCE DEPARTMENT, VIDHANA SOUDHA, BANGALORE. SHRI SHADAXARAYYA RAJSHEKARAYYA NAVALI HIREMATH, AGE: 50 YEARS, OCC: PWD CLASS-I CONTRACTOR, R/O. NAVANAGAR, HUNAGUND, DIST: BAGALKOT-587118. …RESPONDENT (BY SRI. J.S. SHETTY, ADVOCATE)
COURT ACT, 1961 PRAYING TO, SET ASIDE THE ORDER
DATED:15/10/2010 AND ORDER DATED 27.05.2010 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.61713/2010(TAX) BY ALLOWING THIS APPEAL & ETC., IN WRIT APPEAL NO.30636 OF 2012
1. VAT SUB-OFFICER-382, ATHANI.
2. LOCAL VAT OFFICER-440, BIJAPUR.
3. THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA TERIGA KARYALAYA, GANDHINAGAR, BANGALORE.
4. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE, BY ITS SECRETARY, -4- VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE-560001.
1. SHRI SHIVARUDRA R. GHULAPPANAVAR AGE: 38 YEARS, R/O. RAYAGOUDA CHULAPPAHAVAR ENGINEER AND CONTRACTOR, VIKRAMPUR, ATHANI, DISTRICT BELGAUM.
2. SHRI REVANNA M. PATIL AGE: 40 YEARS, OCC: CONSUTING CIVIL ENGINEER AND CLASS I CONTRACTOR, MADHABAVI POST, TQ: ATHANI, DIST: BELGAUM.
3. MRS SHAINAJABI W/O. IMAM BIRADAR AGE: 42 YEARS, M/S. BIRADAR CONSTRUCTIONS, GOVT. REGD. CONTRACTOR, DR. DESAI COMPLEX, NEAR HEAD POST OFFICE, ATHANI-591304, DIST: BELGAUM.
4. SHRI IMAM S/O. GUDUSAHEB BIRADAR AGE: 50 YEARS, M/S. I.G. BIRADAR, CLASS-I CONTRACTOR, VIKRAMPUR, ATHANI, DIST: BELGAUM.
5. SHRI VISHWANATH N. SHETTY, S/O. NARAYANA SHETTY, AGE: 42 YEARS, OCC: CLASS-I CONTRACTOR, KPWD (REGD), SHANTHINAGAR, ATHANI.
6. SHRI NANASAB P. AWATADE S/O. NANASAHEB PANDURANGA AWATADE, AGE: 38 YEARS, OCC: CLASS-I PWD CONTRACTOR, VIKRAMPUR, ATHANI, DIST: BELGAUM. …RESPONDENTS (BY SRI. H.R. KAMBIYAVAR, ADVOCATE FOR R1, NOTICE TO R2 TO R6 ARE SERVED) -5-
COURT ACT, 1961, R/W. RULE 27 OF WRIT PROCEEDINGS, PRAYING TO, SET ASIDE THE ORDER DATED:21/08/2009 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.9405/2008 (TAX-KST) BY ALLOWING THIS WRIT APPEAL. IN WRIT APPEAL NO.30637 OF 2012
1. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES, AUDIT 2 NAVANAGAR, HUBLI.
2. THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA TERIGA KARYALAYA, GANDHINAGAR, BANGALORE.
3. THE STATE OF KARNATAKA, DEPARTMENT OF FINANCE, BY ITS SECRETARY, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE-560001.
M/S MAHALINGA SHETTY & CO. LTD., R/BY ITS MANAGING DIRECTOR, MR. RAJU MAHALINGA SHETTY, AGE: 52 YEARS, ENGINEER & CONTRACTORS, NO. 64, VISHWESHWARNAGAR, HUBLI-580 032. …RESPONDENT (BY SRI. H.R. KAMBIYAVAR AND SRI. M.N. SHANKAREGOUDA, ADVOCATES) COURT ACT, 1961, R/W. RULE 27 OF WP PROCEEDINGS, PRAYING TO, SET ASIDE THE ORDER DATED:21/08/2009 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.30472/2008 (TAX-KST) BY ALLOWING THIS WRIT APPEAL. -6- IN WRIT APPEAL NO.30638 OF 2012
1. THE ASST. COMMISSIONER OF COMMERCIAL TAXES, LOCAL VAT OFFICE 340, HAVERI.
2. THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA TARIGE KARYALAYA, GANDHINAGAR, BANGALORE.
3. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE, BY ITS SECRETARY, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE-1.
1. SHRI S.C. MARADUR AGE: 41 YEARS, OCC: CIVIL ENGINEERS AND CONTRACTOR, RAJENDRA NAGAR, OPP: STATE BANK OF MYSORE, HAVERI-10.
2. SHRI N.C. MARADUR, AGE: 40 YEARS, OCC: CIVIL ENGINEERS AND CONTRACTOR, RAJENDRA NAGAR, OPP: STATE BANK OF MYSORE, HAVERI-10. …RESPONDENTS (BY SRI. H.R. KAMBIYAVAR, ADVOCATE)
COURT ACT, 1961, R/W. RULE 27 OF WP PROCEEDINGS RULES, PRAYING TO, SET ASIDE THE ORDER DATED:21/08/2009 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.9402/2008 (TAX-KST) BY ALLOWING THIS WRIT APPEAL. IN WRIT APPEAL NO.30888 OF 2012
1. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LVO-510, KINNAL ROAD, KOPPAL. -7-
2. THE COMMISSIONER OF COMMERCIAL TAXES VANIJYA TERIGE KARYALAYA, GANDHI NAGAR, BANGALORE-09.
3. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE, R/BY ITS SECRETARY, VIDHANA SOUDHA, BNAGALORE-09.
1. V.R. PATIL AND ASSOCIATES AGE: 41 YEARS, OCC: CONTRACTOR, 183, HOSALINGAPUR, TQ: KOPPAL. REP. BY SHARNAGOUD.
2. VINAY S/O IRAYYA GOUDAR AGE: 31 YEARS, OCC: CONTRACTOR SIRASAPPAYANAMATH STREET, KATARKI ROAD, KOPPAL.
3. YELLAPPA S/O SHIVAPPA KATARALLI, AGE: 51 YEARS, OCC: CONTRACTOR TEGGINKERI STREET, KOPPAL.
4. DYAMANNA S/O GANGAPPA KARIGAR AGE: 39 YEARS, OCC: CONTRACTOR, AT POST HATTI, TQ AND DIST: KOPPAL. …RESPONDENTS (BY SRI. H.R. KAMBIYAVAR, ADVOCATE)
COURT ACT, 1961, PRAYING TO, SET ASIDE THE ORDER
DTD.30.09.2011 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NOS.60497-500/2010 BY ALLOWING THIS APPEAL. IN WRIT APPEAL NO.30889 OF 2012
1. THE ASSISTANT COMMISSIONER OF -8- COMMERCIAL TAXES, LVO-510, KINNAL ROAD, KOPPAL.
2. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LVO-490, BUDA COMPLEX, BELLARY.
3. THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA TERIGE KARYALAYA, GANDHI NAGAR, BANGALORE -09.
4. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE, R/BY ITS SECRETARY, VIDHANA SOUDHA, BANGALORE -09.
1. SRI. BASAVARAJ M.PURAD AGE: 47 YEARS, OCC: CONTRACTOR, NEAR BANNIKATTI AT POST, KOPPAL-583231.
2. KASINATH REDDY AGE: 57 YEARS, OCC: CONTRACTOR, B.T. PATIL NAGAR, AT POST KOPPAL-583231.
3. SURESH BHUMAREDDY AGE: 47 YEARS, OCC: CONTRACTOR, NEAR I.B. KINNAL ROAD, AT POST KOPPAL-583232.
4. DEVAPPA H. ARAKERI AGE: 47 YEARS, OCC: CONTRACTOR, AT POST ARAKERI, TQ: YALABURGA, DIST: KOPPAL.
5. P. SAMBASHIVARAO S/O P. LINGAYYA, AGE: 42 YEARS, OCC: CONTRACTOR, NEAR HANUMAN TEMPLE, MUNIRABAD DAM, DIST: KOPPAL. -9-
6. K. EDUKONDALU AGE: 47 YEARS, OCC: CONTRACTOR, NEAR HANUMAN TEMPLE, MUNIRABAD DAM, TQ: KOPPAL.
7. P. VARAPRASAD RAO S/O P. LINGAYYA AGE: 40 YEARS, OCC: CONTRACTOR, NEAR HANUMAN TEMPLE, TQ & DIST: KOPPAL. …RESPONDENTS (BY SRI. H.R. KAMBIYAVAR, ADVOCATE)
COURT ACT, 1961, PRAYING TO, SET ASIDE THE ORDER
DTD.30.09.2011 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.60218-224/2010[T-RES] BY ALLOWING THIS APPEAL. IN WRIT APPEAL NO.31269 OF 2013
1. THE STATE OF KARNATAKA DEPARTMENT OF FINANCE BY ITS SECRETARY, VIDHANA SOUDHA, BANGALORE-01.
2. THE COMMISSIONER OF COMMERCIAL TAXES IN KARNATAKA, VANIJYA TERIGE KARYALAYA-1, GANDHINAGAR, BANGALORE-9.
3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, VAT SUB OFFICE-511 SAROJA COMPLEX, BUS STAND ROAD, GANGAVATHI-583227, DIST: KOPPAL. SRI. RAVINDRANATH S/O PAMPAMAHESHWAR AGED ABOUT 51 YEARS, NO.169/A, VEERENDRA NILAYA VIRUPAPUR ROAD, SAROJA NAGAR, GANGAVATHI, DIST: KOPPAL-583227. - 10 - …RESPONDENT (BY SRI. K. ANANDKUMAR, ADVOCATE) COURT ACT, PRAYING TO SET-ASIDE THE JUDGMENT DATED 23.07.2013 PASSED BY THE LEARNED SINGLE JUDGE IN W.P.NO.63461/2009 & ETC., THESE APPEALS COMING ON FOR FINAL HEARING, THIS DAY, S G PANDIT, J., DELIVERED THE FOLLOWING:
JUDGMENT
In all these appeals, order dated 22.04.2009 in WP No.14001/2008, order dated 12.09.2011 in WP No.60449/2010, order dated 15.10.2011 in WP No.61713/2010, orders dated 21.08.2009 in WP No.9405/2008, WP No.30472/2008 and WP No.9402/2008,
order dated 30.09.2011 in WP Nos.60497-500/2010 & WP
Nos.60218-224/2010 and the order dated 23.07.2013 in WP No.63461/2009 are under challenge, wherein the constitutional validity of Section 15(5)(e) of the Karnataka Value Added Tax Act, 20031 was declared ultra vires the Constitution of India, by following the judgment of learned Single Judge dated 13.04.2009 passed in WP No.9757/2007 and connected writ petitions. ‘KVAT Act’, for short - 11 -
2. The State had preferred WA Nos.2605/2009 &
connected matters against the order dated 13.04.2009 passed in WP No.9757/2007 & connected writ petitions. A co-ordinate Bench of this Court disposed off the said writ appeals vide judgment dated 18.12.2023. The co-ordinate Bench of this Court had formulated following questions of law in the said writ appeals:
(i) Whether Section 15(5)(e) of the KVAT Act, inserted by the Finance Act, 2007 is ultra vires Constitution?
(ii) If the answer to the above question is in the negative, will it have retrospective effect i.e., from April 1, 2006?
3. The co-ordinate Bench of this Court answered
Point No.(i) in the affirmative and insofar as Point No.(ii), it was held that as the point No.(i) is answered in the affirmative, Point No.(ii) does not require any consideration. Thus, we are of the considered view that the issue on hand in the present appeals is squarely covered by the decision of the co-ordinate Bench of this Court in WA No.2605/2009 & connected matters, dated 18.12.2023. Accordingly, all these - 12 - appeals are disposed off by following decision of the co- ordinate Bench of this Court referred to supra. Pending applications, if any, are disposed off as not surviving for consideration. Sd/- JUDGE Sd/- JUDGE JTR CT:VP LIST NO.: 1 SL NO.: 49