TaxTMI 
TaxTMI 
2009 (4) TMI 893
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....s carrying on business in advertising and publicity, supply of printed materials like booklets, calendars, diaries, visiting cards, etc., in the course of business and liable for levying turnover tax under section 6B of the Karnataka Sales Tax Act, 1957 (an "Act", for short), is questioned in this writ petition. The following substantial questions would arise: (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal had material to hold that there is a transfer of property in goods to the petitioner from the printer and also from the petitioner to the customer so as to warrant a conclusion that there are two sales? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tri....
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....d the Tribunal is not only erroneous in law but also suffers from error in law and further submits that the finding recorded on the contentious points by the Karnataka Appellate Tribunal is vitiated both on facts and materials produced before the appellate authority and the provisions of the KST Act, namely, the "dealer" as defined under section 2(k) of the Act. The petitioner is neither doing business nor dealing, selling, supplying or distributing goods directly or otherwise or for commission, remuneration or for other valuable consideration and also for want of sub-clauses incorporated therein, as the petitioner is a service-oriented advertising agency, which is being carried on to provide service to its customers. Therefore, its activit....
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.... the aforesaid substantial questions of law have to be answered in favour of the petitioner-assessee. With reference to the abovesaid legal contentions urged by Mr. Sarangan, we have carefully examined the same as to whether the said legal contentions urged on behalf of the petitioner are legally tenable in the light of the findings recorded by the assessing authority. Both the points are required to be answered against the petitioner-assessee for the following reasons: In view of the categorical finding of fact recorded by the assessing authority on the basis of the statement of objections filed for the proposition notices issued by the assessing authority after the liberty given to the assessee by this court in the earlier writ peti....
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.... (b) The dealer-company then places orders with other parties/ printers for supply of the above materials. (c) The printers execute the order and supplies the required items as per specification provided by the dealer-company against invoices raised in favour of the dealer-Co., i.e., the advertising agency. (d) The dealer-company/advertising agency on receipt of the material supplies the same to the client against invoices at the rate agreed upon. From the various related correspondence supported by seized documents of invoices raised by the printer to the dealer-Co. and from the dealer-Co. to the client, it is amply clear that the title of the goods had been passed on to the dealer-company by the supplier/ printer and subsequently,....
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....ing authority by Mytee Process." On the same lines, cross-verification of transactions was made in respect of M/s. Nataraj Printers to show that the sales tax was collected and paid to the Commercial Tax Officer, 20th Circle, Bangalore. Bill Nos. are extracted below: Bill No. Amount ST + SC 5058 1,070 42.84 5310 25,194 1,129.44 5342 130 5.20 5276 235 9.35 5440 1,041 41.65 5308 503 20.10 On the basis of the abovesaid details, the assessing officer has come to the right conclusion and held the abovesaid details of the documents seized from the petitioner and the goods supplied by the petitioner to its customers would establish that the petitioner is liable to pay turnover ta....