Court : Supreme Court of India
Reported in : 2008(56)BLJR1038; 2008(1)CTC843; JT2008(1)SC496; 2008(1)SCALE356; (2008)2SCC614; 2008[9]STR337; [2008]12STT392; (2008)12VST371(SC)
..... must express our reservation in regard to the question as to whether the appellant having already undergone the process of regular assessment before the assessing authority, an application under section 60 of the karnataka value added tax act, 2003 was maintainable. ..... of list ii is, as we see it, for reasons ultimately attributable to the principles enunciated in gannon dunkerley case 5, namely, if there is an instrument of contract which may be composite in form in any case other than the exceptions in article 366(29a), unless the transaction in truth represents two distinct and separate contracts and is discernible as such, then the state would not have the power to separate the agreement to sell from the agreement to render service, and impose ..... provide such services is party specific and issue specific; be it for issuance of a brochure or a year book or for any other purpose.appellant, in their returns, made three categorical divisions in regard to its tax liabilities (1) the amount of service tax on the specific design and production; (2) the amount ofkarnataka sales tax on the specified item on the first sale; and (3) when certain items are outsourced, the tax payable on resale of the said goods in terms of section 6(4) of thekarnataka sales tax act.14. ..... down therein that the effect of amendment by introduction of clause 29a in article 366 is that by legal fiction, certain indivisible contracts are deemed to be divisible into contract of sale of goods and contract of service. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2009KAR2657; (2009)24VST250(Karn); 2009(3)KCCRSN123; 2009(6)AIRKarR141
..... that having regard to the scheme of the karnataka value added tax act, 2003, the levy of sales tax is sought to be made a single point levy, in the sense that the same goods would not suffer tax repeatedly but if there is a value addition to the goods it is only the additional value which suffers tax and permitting section 15(5)[e] of the act to operate from an earlier date runs counter ..... composition and persons like the petitioners who have opted for payment of tax by way of composition; that certain anomalies which worked in favour of persons who have opted for payment of tax by way of composition are set right by the amendment; that having regard to the concept of net tax payable by the dealers in the normal course and having regard to ..... on persons who had opted to pay tax by way of composition; that the provision being not a charging section meant to retain or save earlier levy and collection which has been invalidated and being not a provision to obviate the state to tide over the obligation of refunding taxes collected and spent, such being not the position in the present case, retrospective operation of the provision cannot ..... first submission is that the additional burden in terms of section 15[5][e] of the act whether prospective or retrospective is unconstitutional being beyond the taxing power of the state legislature referable to entry-54 of list-ii of schedule-vii of the constitution of india as tax can only be paid on the sales or purchases of the same goods but not at .....
Tag this Judgment!Court : Karnataka
Reported in : (2009)25VST101(Karn); 2009(3)KCCRSN97; 2009(5)AIRKarR167; AIR2009NOC2987
..... section 15 of the act by drawing attention to the change over of the scheme of levy of sales tax under the karnataka sales tax act, 1957, the scheme of levy of tax under the karnataka value added tax act, 2003 which virtually seeks to harmonize the levy of sales tax as though it is a single point levy; that the scheme is so formulated that the goods which has suffered tax once does not suffer the levy of sales tax again and it is only on the additional value, tax ..... case of a dealer opting for composition of tax under clause (a) or (c) of sub-section (1), the turnover on which tax is leviable under sub-section (2) of section 3 shall be deducted from the total turnover on which an amount as notified is payable under sub-section (1) by way of composition in lieu of the tax payable under the act;(e) a dealer executing works contracts and opting for composition of tax under sub-section [1], shall be liable to pay tax, if any, under sub-section [2] of section 3, in addition to tax ..... provision of section 15 of the act is a provision providing or extending a facility to some of the dealers; that it is more like an exception to the general scheme of the act of levying tax in terms of charging sections 3 and 4 of the act; that while the purpose and object of section 15 of the act is to provide facility to facilitate certain class of ..... the action of the state whether in the exercise of legislative power or executive power, the state is acting in a fair manner, in a non-arbitrary manner, whether .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2009KAR633
..... the manner in which the provisions of sub-section (1) of section 72 of the act have been tinkered every year as an annual exercise, as can be noticed below:section 72(1) of the karnataka value added tax act, 2003 as it stood from time to time since 2005ii. ..... offences of non-compliance and contravention of the various provisions of law; and(ix) minimises disputes regarding the time of sale by defining the same and thereby ensuring payment of tax without delay and also requires dealers to issue tax invoices within reasonable time to the buying dealers.certain other incidental and consequential provisions are also made.hence the billand is only a deterrent to ensure prompt compliance with the time stipulation and compulsory nature ..... for the purpose of ensuring prompt compliance with the taxing statute, it necessarily travels beyond the main power; that courts have time and again upheld the validity of such legislative provisions; that the present provision such as sub-section (1) of section 72 of the act is no different from those provisions; that the provision of sub-section (1) of section 72 of the act and the rationale for enacting such provision is well supported by a plethora of decided cases and has in this regard placed reliance on the ..... the amount collected by way of penalty to be refunded to the respective petitioners.rule made absolute. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2008KAR4299; 2008(6)AIRKarR16(DB)
..... to interim with the combined reassessment and penalty orders dated 29.1.2007 (vide annexure-a and a-1 to a-6) for the months from april 2006 to october 2006 passed by the deputy commissioner of commercial taxes, audit-43, dvo-4 (hereinafter referred to as 'assessing authority' for short) assessing the tax on the turn over relating to sales of mosquito repellants at 12.5% under the karnataka value added tax act, 2003 (hereinafter referred to as 'kvat act' for short).2. ..... it is observed by the division bench of this court at para 12 in the said case as under.merely because, the proviso given to sub-section (1) of section 3-a of the act, prohibits the commissioner to give any instructions which interferes with the power of the appellate authority, in our view, it is not possible to even remotely think that the concerned authorities will go against the instructions given by the commissioner in circular, annexure d and give scope for any ..... urged by the learned senior counsel and aga on behalf of the patties, it would be necessary for us to examine the relevant provisions of kvat act, insecticides act, 1968 and the rules thereunder, section 4 of the kvat act reads as under.section 4 - liability to tax and rates thereof-(1) every dealer who is or is required to be registered as specified in sections 22 and 24, shall be liable to pay tax, on his taxable turnover,(a) in reject of goods mentioned in-(i) second schedule, at the rate of one percent;(ii) third schedule, at the rate of .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2009KAR1990; (2009)25VST230(Karn):2009(4)KCCRSN241:AIR2009NOC2986:ILR2009(2)Kar2240
..... writ petitions by an assessee assessed under the provisions of the karnataka value added tax act, 2003 [for short 'the act] who was aggrieved by the order dated 11.2.2008 passed under section 38[1] of the act for the period from april 2005 to december 2006 as per the order passed by the assistant commissioner of commercial taxes [audit-7], dvo, mangalore and who had preferred an appeal against this order before the joint commissioner of commercial taxes [appeals], mangalore who unfortunately has dismissed the appeal ..... - where, by any more act or karnataka act made after the commencement of this act, any act or proceeding is directed or allowed to be done or taken in any court or office on a certain day or within a prescribed period, then, if the court or office is closed on that day or the last day or the prescribed period, the act or proceeding shall be considered as done or taken in due rime if it is done or taken on the next day afterwards on which the court or office is open:provided that nothing in this section shall apply to any ..... have been dismissed straight away but the appellate authority should have issued a notice in form vat 435 requiring rectification of the defects including as in the present case to file an application for condonation of delay so that requirement of rule 148[1] of the rules is fulfilled for effectuating the provisions of section 62[3] of the act and submits that the appellate order suffers from infirmity for this reason also.9. .....
Tag this Judgment!Court : Karnataka
Reported in : (2009)22VST465(Karn); 2009(3)AIRKarR235(D.B)
..... statutory remedy of appeal provided under karnataka value added tax act, 2003?2) whether the 3rd respondent - assessing authority was justified in passing the impugned order dated 12.01.2007 making re-assessment of the tax payable by the appellant - assessee - company on the ground that the broadband connectivity provided by the appellant to its subscribers amounts to 'sale of light energy' taxable under section 3 of the karnataka value added tax act, 2003?3) whether the government of karnataka has authority under the constitution of india to levy tax on the appellant - company under the ..... the question 'whether the light energy is capable of being abstracted, possessed, transferred and delivered' as under:a) once a photon is created in a typical network it is transmitted to optical fibre towards the service provider but transmits its information (in certain cases after converting the signal from optical to electronic form) towards its destination through system of routers. ..... the said article 246 further provides that the parliament and also the legislature of any state, both shall have power to make laws with reference to any of the matters enumerated in list iii in the 7th schedule which list is referred to as 'concurrent list'. .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2006KAR2788; [2006]147STC619(Kar)
..... csl 2005 (1) reads thus :in exercise of the powers conferred by sub-section (2) of section 5 of the karnataka value added tax act, 2003 (karnataka act no. ..... once the new entrepreneurs were lured for establishing the hotels in the b & c grade cities on being assured with certain years guaranteed incentive of tax rebate on certain items and acting under the same, once they had established their industries and spent large amounts for constructing the infrastructure and for employing necessary labour and for purchasing raw ..... the endorsement issued by the authorities withholding the said exemption and the assessments orders passed against the petitioners for the period for which they were granted exemption from paying tax, stand quashed. ..... would be almost impossible for them to restore the status quo ante and walk out in the midstream if the tax rebate incentive is withdrawn for unexpired period out of three or seven years, as the case may be, which is the guaranteed period of exemption of tax rebate. ..... but in this case, as aforesaid the government has not issued any notification withdrawing the earlier notifications in ..... in these cases on hand, this court does not find anything to hold that the assessment orders are backed up by any demand of public interest which would outweigh individual interests ..... in case there is a supervening public equity, the government would be allowed to change ..... sake of convenience, i prefer to note the facts of one writ petition.brief facts of the case in w.p. no. .....
Tag this Judgment!Court : Karnataka
Reported in : 2009(162)LC193(Karnataka); ILR2008KAR5084; 2009(1)KCCRSN18; 2009(3)AIRKarR163; AIR2009NOC2186
..... according to the petitioner, the petitioner is a registered dealer under the provisions of the karnataka value added tax act, 2003 (hereinafter referred to as the kvat act, for short) and has been selling the bakery products like toffees along with other articles such as toilet articles and cosmetics etc. ..... 's business would fall under section 15(1)(a) of the kvat act and based on the same, the taxes are paid at the rate of 1% on the total turn over.the respondents on conduct of an inspection found that, the case of the petitioner would fall under section 15(1)(c) of the kvat act and have called upon the petitioner to pay tax at the rate of 4% and a notice under section 72 of the kvat act to levy penalty has also been issued and that the taxes at 4% has been collected peremptorily ..... therefore, the action taken by the respondents in collecting taxes peremptorily treating his case as one under section 15(1)(c) of the kvat act and issuing notice under section 72 of the kvat act is bad under law.4. ..... to pay in lieu of the net amount of tax payable by him under this act by way of composition, an amount at such rate not exceeding five percent on his total turnover or on the total consideration for the works contracts executed or not exceeding two lakh rupees for each crushing machine per annums may as be notified by the government as may be prescribed.without considering whether the case of the petitioner would fall under section 15(1)(a) or 15(1)(c) as contended by the learned counsel .....
Tag this Judgment!Court : Karnataka
Reported in : ILR2009KAR4217
..... 19283 to 19294 of 2009 where under the learned single judge of this court dismissed all the writ petitions only on the premise that the writ petitioners had the alternative statutory remedy of appeals under section 62 of the karnataka value added tax act, 2003 [for short 'the act'] and therefore reserving liberty to the petitioners, the petitions were dismissed enabling the petitioners to file appeals seeking statutory remedies.2. ..... , in the present case karnataka value added tax act, 2003 should be allowed to operate.12. ..... writ petitioners were aggrieved by these orders for the reason that certain principles relating to the understanding and the attraction of the liability for payment of tax under the provisions of the act were basically wrongly understood by the assessing authority; that what was not even goods and virtually something in the nature of immovable property was sought to be taxed by the assessing authority treating the property as though it was goods and therefore the authority basically ..... an interference in this course of scheme under the writ jurisdiction may be possible, if at all in a situation where an authority purporting to exercise functions under the act assumes jurisdiction not under the act or while exercising powers and functions under the act and as statutory authorities grossly misuses or abuses the power or even victimizes a given assessee or dealer due to irrelevant considerations.13. .....
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