Dismissed

The State of Karnataka v. Ms Bharathi Rock Products

Karnataka HC4 Jan 2023STRP/60/2022

Case brief

AI extract

What is this about?

The Karnataka High Court dismissed the Revenue's sales tax revision petition, holding it unnecessary to adjudicate as the underlying legal questions are subjudice in a pending Supreme Court appeal. The court answered the tribunal's questions of law in favor of the assessee and remitted the matter to be bound by the apex court's decision.

What did the court decide?

The questions of law were answered in favor of the assessee. The parties are bound by the pending Supreme Court appeal outcome. No costs.

The State of Karnataka Vs Ms Bharathi Rock Products — Writ and Judicial Review | Karnataka HC (2023)

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STRP No. 60 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 4^TH DAY OF JANUARY, 2023

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PRESENT

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THE HON'BLE MR JUSTICE P.S.DINESH KUMAR

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AND

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THE HON'BLE MR JUSTICE G BASAVARAJA

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SALES TAX REVISION PETITION NO. 60 OF 2022

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BETWEEN:

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THE STATE OF KARNATAKA BENGALURU

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THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)- 1, BMTC BUS STAND COMPLEX, DOUBLE ROAD, NEXT TO BIG BAZZAR, SHANTHINAGAR, BENGALURU - 27.

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Digitally signed by RAMYA D Location: High Court of Karnataka

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THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT AND RECOVERY) -1.8, DVO 1, BENGALURU.

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…PETITIONERS

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(BY SRI. JEEVAN J. NEERALGI, AGA)

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AND:

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M/S BHARATHI ROCK PRODUCTS INDIA PVT. LTD.,

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STRP No. 60 of 2022

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NO.24, OLD NO.56B/34, 1ST MAIN ROAD, NEAR BHASHYAM CIRCLE PETROL BUNK, VYALIKAVAL, BENGLAURU - 560 003.

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…RESPONDENT

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(BY SRI. RAVI RAGHAVAN, ADVOCATE)

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THIS STRP FILED UNDER SEC.65(1) OF THE KARNATAKA VALUE ADDED TAX ACT,2003, AGAINST THE JUDGMENT DATED 22.04.2022 PASSED IN STA NO. 122,123 AND 124/2018 ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL AT BANGALORE, ALLOWING THE APPEAL AND SETTING ASIDE THE ORDER DATED 31.01.2018 PASSED IN VAT.AP No.55/17-18, VAT.AP.No.56/17-18 AND VAT AP No.57/17-18 ON THE FILE OF THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS) - 1, BENGALURU, DISMISSING THE APPEALS, AND FILED AGAINST THE REASSESSMENT ORDER DATED 09.05.2017, PASSED BY THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT) 1.8, BANGALORE FILED UNDER SECTION 39(2), 36 AND 72(2) OF THE KVAT ACT 2003 FOR THE TAX PERIOD OF APRIL 2010 TO MARCH 2011, APRIL 2011 TO MARCH 2012 AND APRIL 2012 TO MARCH 2013.

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THIS PETITION, COMING ON FOR FINAL ORDERS, THIS DAY, P.S. DINESH KUMAR J., MADE THE FOLLOWING:

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STRP No. 60 of 2022

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ORDER

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This Revision Petition is filed by the Revenue challenging KAT's¹ order dated 22.04.2022 passed in STA Nos.122, 123 and 124/2018, allowing the appeal filed under Section 63(1) of the Karnataka Value Added Tax Act, 2003² to consider following questions of law:

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a) Whether on the facts and in the circumstances of the Petitioner's case, the Appellate Tribunal was right in law in allowing the Appeal by holding that M-sand is classifiable under Entry 83 of Third Schedule to the K-VAT Act without appreciating that M-Sand, is distinct and different from river sand in its property and form and consequently attracting tax @ 5.5%?

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b) Whether on the facts and in the circumstances of the Petitioner's case, the Appellate Tribunal was right law in allowing the Appeal filed by the Respondent ignoring the prospective amendment to Entry 83 Third Schedule of the K-VAT Act, wherein the rate of tax came to be reduced to 5.5% w.e.f. 01.04.2015?

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1 Karnataka Appellate Tribunal

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2 KVAT Act

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STRP No. 60 of 2022

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c) Whether the Appellate Tribunal was right in allowing the appeal filed by the Respondent, by overlooking the statutory provision that the Entry in the notification cannot be reckoned retrospectively unless it is specifically mentioned in the notification?

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Heard Shri. Jeevan J. Neeralgi, learned AGA appearing

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for the Revenue and Shri. Ravi Raghavan for the assessee.

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Shri Ravi Raghavan submits that the issue involved in

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the present petition is covered against the Revenue in STRP No.24/2019 decided on 23.09.2021.

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Learned AGA submits that order in STRP No.24/2019 has been challenged by the Revenue before the Hon'ble Apex Court in SLP No.10367/2022 and the same is pending adjudication.

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