Court : Karnataka
..... , demand notice in form vat180and for a direction to respondents 1 to 3 to refund the amount; and (b) for a declaration that section 3 of the karnataka value added tax act, 2003 to the extent it seeks to levy tax on pure services like implementation, customization and other support services in respect of software as ultra vires articles 246 and 265 of the constitution of india; or (c) in the alternative, to declare that section 65 (105) (zzzze) of the finance act, 1994, to the extent it seeks to levy service tax on implementation, customization and other support services, if treated as a sale ..... dated 22-09-2009 was issued under section 39 of the kvat act proposing to tax sale of software as sale of software licenses at a higher rate of 12.5% for the tax periods april 2005 to march 2007, to treat the contract for implementation of finacle as a works contract involving transfer of property in goods liable to tax at the rate of 12.5% after giving deduction for the labour charges and to disallow the petitioner s claim for input tax credit to the extent of 45% on the ground that the onsite activity of the petitioner in terms of the agreements for development and export of software ..... it is a contract to permit right to use enhancements, upgrades, maintenance and releases as well as annual technical support services as it was indivisible by virtue of 46th amendment which falls under clause (b) of article 366 (29a).46. .....
Tag this Judgment!Court : Karnataka Dharwad
..... of mind and that the onus was on the respondents revenue to show that the appellants had deliberately availed fraudulent or ineligible itc; in the instant case, the ecl of the appellants had been blocked by the respondents without verifying the genuineness of the transaction and a bonafide purchaser cannot be denied itc on account of a supplier s default and the recipient cannot be made to suffer denial of itc for the wrong doings of the supplier; so also, blocking of ecl would defeat the principles and purpose of value added tax and would lead to ..... a cascading effect thereby resulting in irreparable injury and hardship to the appellants especially when itc was ..... in view of the said amendment, it can be argued that the main plank of the judgment in rajesh kumar to the effect that direction under section 142(2a) entails civil consequences because the assessee has to pay substantial fee to the special auditor is knocked ..... this juncture, it would be relevant to take note of the insertion of the proviso to section 142(2d) with effect from june 1, 2007. .....
Tag this Judgment!Court : Karnataka Dharwad
..... of mind and that the onus was on the respondents revenue to show that the appellants had deliberately availed fraudulent or ineligible itc; in the instant case, the ecl of the appellants had been blocked by the respondents without verifying the genuineness of the transaction and a bonafide purchaser cannot be denied itc on account of a supplier s default and the recipient cannot be made to suffer denial of itc for the wrong doings of the supplier; so also, blocking of ecl would defeat the principles and purpose of value added tax and would lead to ..... a cascading effect thereby resulting in irreparable injury and hardship to the appellants especially when itc was ..... in view of the said amendment, it can be argued that the main plank of the judgment in rajesh kumar to the effect that direction under section 142(2a) entails civil consequences because the assessee has to pay substantial fee to the special auditor is knocked ..... this juncture, it would be relevant to take note of the insertion of the proviso to section 142(2d) with effect from june 1, 2007. .....
Tag this Judgment!Court : Karnataka Dharwad
..... of mind and that the onus was on the respondents revenue to show that the appellants had deliberately availed fraudulent or ineligible itc; in the instant case, the ecl of the appellants had been blocked by the respondents without verifying the genuineness of the transaction and a bonafide purchaser cannot be denied itc on account of a supplier s default and the recipient cannot be made to suffer denial of itc for the wrong doings of the supplier; so also, blocking of ecl would defeat the principles and purpose of value added tax and would lead to ..... a cascading effect thereby resulting in irreparable injury and hardship to the appellants especially when itc was ..... in view of the said amendment, it can be argued that the main plank of the judgment in rajesh kumar to the effect that direction under section 142(2a) entails civil consequences because the assessee has to pay substantial fee to the special auditor is knocked ..... this juncture, it would be relevant to take note of the insertion of the proviso to section 142(2d) with effect from june 1, 2007. .....
Tag this Judgment!Court : Karnataka
..... , delivered the following judgment the present appeal is directed against order dated 18/2/2012, passed by the commissioner of commercial taxes, in exercise of his revisional power, whereby, order dated 28/3/2007 of the advance ruling authority is set aside and it is, further, clarified that mango juc-fit in liquid form and mango fruit booster, rasna utsav and orange juc-up in powder form are unscheduled goods liable to tax under section 4(1)(b) of the karnataka value added tax act, 2003 (hereinafter referred to as the kvat act ).2. ..... (7) if the order passed or proceedings recorded by the appropriate authority referred to in sub-section (1) or (2), involves an issue on which the high court has given its decision adverse to the revenue in some other proceedings and an appeal to the supreme court against such decision of the high court is pending, the period spent between the date of the decision of the high court and the date of the decision of the supreme court shall be excluded in computing the period referred to in clause (c) of sub-section (3). ..... since sub-section(8) is based on the amendment brought about for inclusion of section 59(4) and sub-section (7) of section 60, it would be relevant for the purpose of the present case. ..... however, the aforesaid is by amendment of 2013, which is - 11 - not applicable to the present case. .....
Tag this Judgment!Court : Karnataka
..... in w.p.nos.35989-36000/2016, the petitioner has challenged the order dated 05.05.2016 passed by the additional commissioner of commercial taxes under section 64 of the karnataka value added tax act, 2003 [act for short].. ..... of the act as under: tax period means such periods as may be prescribed; rule 37 of the karnataka value added tax rules, 2005 [rules for short]. ..... of the karnataka value added tax act, 2003 [act for short]. ..... by giving such an interpretation, the entire gamut of taxation mandating the strict adherence of filing returns, the foundation for assessment to determine the net tax liability gets uprooted, effacing chapter v and the penal provision under section 72 disturbing the scheme of the act which is not the intent and object of the amendment brought to section 10[3]. ..... therefore, the assessing authority as well as the first appellate authority rightly held that the claim for input tax rebate put forth for the first time in february 2007 for the period of june 2006 cannot be allowed. ..... he cannot for the first time in the returns filed in february 2007 put forth a claim for input tax deduction as the said return was not related to the tax period during which the input tax was paid. ..... it is only in the return filed in the month of february 2007, after the expiry of the aforesaid period, he put forth the said claim. .....
Tag this Judgment!Court : Karnataka
..... of the gujarat value added tax act, 2003, one of us (hon'ble m.r. ..... the learned additional solicitor general would further emphasise on the fact that the intention of the legislature in bringing in the amendment to the act in the year 2015 was to 19 air1964sc114020 2003 scc online all 109 21 2007 scc online del.951 22 2022 scc online sc92918 tackle the menace of black money being parked outside the nation, in the garb of business, like how the petitioner has managed and, therefore, it cannot be held to be arbitrary or otherwise. ..... vide finance act, 2015, it further included such property (being proceeds of crime) which is taken or held outside the country, then the property equivalent in value held within the country and by further amendment vide act 13 of 2018, it also added property which is abroad. ..... from the objects of the impugned legislation and amendment itself, it is crystal clear that the legislation was brought about on the admission of the police that it is unable to effectively control the situation in spite of the existence of all the necessary legislation, rules and regulations. ..... the original provision prior to amendment vide finance act, 2015 and finance (no.2) act, 2019, took within its sweep any property (mentioned in section 2(1)(v) of the act) derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence (mentioned in section 2(1)(y) read with schedule to the act) or the value of any such property. .....
Tag this Judgment!Court : Karnataka
..... view of the above findings, the following clarification is issued: clarification no.clr.cr.26/2014-15 dated11.09.2014 in suppression of the clarification no.ar.clr.cr.119/2006-07 dated 30.03.2007 issued by the authority for clarification and advance rulings and in exercise of the powers vested in me under sub-section (8) of section 60 of kvat act, 2003, it is clarified that all-in-one diapers of various sized underpads and sanitary napkins are taxable at 14.5% under section 4(1)(b)(iii) of the karnataka value added tax act, ..... having given the earnest consideration to the relevant material, this court is of the opinion that the petitioner cannot successfully challenge the constitutional validity and vires of section 60(8) of the act and this court does not find any lack of legislative competence of the state government in enacting and amending section 60(8) of the act, ..... 2/26 this writ petition is filed under articles 226 and 227 of the constitution of india praying to hold that sec.3(ii) & 3(iii) of the karnataka act no.54/13, amending sub-clause (7) & inserting sub-clause (8) to section 60 of kvat act respectively as illegal and violative of article 19(1)(g) r/w article 301 & article 14 of ..... the petitioner therefore, filed this petition challenging the said order as well as the vires of section 60(8) of the act, which was brought on the statute book by the later amendment ..... also urged that such power given under amended provisions of section 60(8) of the act are also date of order :23 .....
Tag this Judgment!Court : Karnataka
..... the brief facts of the case are: - the respondent is a registered dealer under the provisions of the karnataka value added tax act (hereinafter referred to as the act for brevity). ..... the learned senior counsel appearing for the assessee heavily relied upon the decision of the high courts of guwahati, madras and uttarakhand in the case of pepsico india holdings private limited (supra), wherein the question involved was, whether potato chips sold under the brand names lays and uncle chips would be classified as processed vegetables or does it attract the higher rate of tax under the residuary entry of the state sales tax enactments. ..... the entry under the karnataka act is no way similar to assam vat act amended with effect from october 16, 2008, which was the basis for the guwahati high court to arrive at a conclusion that the amendment indicates the intent of the legislature i.e. ..... reported in (2007) 5 vst529(sc) and our attention was drawn to paragraph 23 of the said judgment which reads thus: we have already extracted the definition of raw material under section 2(34) which specifically includes fuel required for the purpose of manufacture as raw material. ..... in the case of a p products vs state of andhra pradesh reported in 2007(6) scc365 the hon ble supreme court has held that, the masala powder prepared after grinding and mixing various spices and the condiments in certain preparation is commercially a different commodity liable to be taxed. ..... (2007) 5 vst529(sc).8. .....
Tag this Judgment!Court : Karnataka
..... the petitioners are dealers registered under the karnataka value added tax act, 2003 (kvat act for short), central sales tax act, 1956 (cst act for short) and karnataka tax on entry of goods act, 1979 (kteg act for short).3. ..... are as under: (a) the notifications have been issued in excess of the legislative power delegated to the state government under section 3(1) of the act inasmuch as the state government as a delegatee was competent to only specify the rate or rates "in respect of different goods or different classes of goods or different classes of goods" as specified in the schedule but it could not have specified the rate of tax by dividing the given commodity into further groups thereby levying tax on similar goods fulfilling certain condition and leaving the remaining out of the taxing net. ..... these petitions having been heard and reserved, is coming on for pronouncement of order this day, the court passed the following:"unmanufactured tobacco order the petitioners have challenged the notification-iii no.fd208csl2013dated 1.10.2013 issued by the government of karnataka insofar as it relates to the amendment made to the notification no.fd11cet2002dated 30.3.2002 for insertion of sub-item (ii) in sl.no. ..... state of karnataka and another reported in [2007]. .....
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