State of Karnataka Vs M/S Hindustan Petroleum Corporation Ltd.

THIS PETITION IS FILED UNDER SECTION 15 A OF KARNATAKA TAX ON ENTRY OF GOODS ACT, 1979, AGAINST THE ORDER DATED 11.10.2023 PASSED IN STA NO.3640/2013 ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL AT BENGALURU, ALLOWING THE APPEAL AND SET ASIDE THE FAA/JCCT.

¶17

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

¶18

CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND

¶19

HON'BLE MR. JUSTICE K. V. ARAVIND

¶20

2 - NC: 2026:KHC:1853-DB CRP No. 120 of 2025

¶21

HC-KAR

¶22

ORAL ORDER

¶23

(PER: HON'BLE MR. JUSTICE S.G.PANDIT)

¶24

Heard learned Additional Government Advocate

¶25

Sri.Aditya Vikram Bhat for the petitioner.

¶26

The above Civil Revision Petition filed under Section 15 A of the Karnataka Tax on Entry of Goods Act, 1979 (for short, 81979 Act9) is directed against the order dated 11.10.2023 in ST.Appeal.No.3640/2013 passed by the Karnataka Appellate Tribunal at Bengaluru (for short, 8the Tribunal9) raising the following substantial questions of law:

¶27

<1. Whether the Hon9ble Karnataka Appellate Tribunal erred in holding that 8Denatured Anhydrous Ethyl Alcohol9 is different from 8ethyl alcohol9 and is not covered in Notification NO.FD 11 CET 2002 (I) dated 30.03.2002?

¶28

2. Whether the Hon9ble Karnataka Appellate Tribunal has failed to consider the legislative intent behind the broad

¶29

3 -

¶30

NC: 2026:KHC:1853-DB CRP No. 120 of 2025

¶31

HC-KAR

¶32

classification of 8spirits and alcohol9 under the KTEG Act, which includes 8ethyl alcohol9 in all its forms?

¶33

3. Whether the levy of interest under Section 7(2) of the KTEG Act is justified as a compensatory measure for delayed payment of the entry tax on 8denatured anhydrous ethyl alcohol9?=

¶34

There is delay of 329 days in preferring the Civil

¶35

Revision Petition. I.A.No.1/2025 is filed to condone the delay of 329 days in preferring the Civil Revision Petition.

¶36

The questions raised herein and the delay in preferring the Revision Petition was the subject matter in CRP.No.116/2025 and other connected petitions before this bench. This bench by order dated 05.12.2025 rejected the Civil Revision Petitions answering the substantial questions of law in favour of the assessee and against the petitioners-State and also dismissed the Civil Revision Petitions on the ground of delay.

¶37