2011 (1) TMI 1252

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....Works. But the books of accounts maintained by the assessee for the month of March 2006 discloses that, he imported the timber logs from M/s. World Best Trading Company, Dubai through Bill Nos. 3946 and 3946A dated March 17, 2006 for total value in USD 1,35,521.41 and declared the value of the goods in question at Rs. 63,65,441 by the Department by filing VAT form 100 and purchase statements. On verification of the bank statement, it was found out that, the assessee had paid amount of Rs. 63,65,441 to the seller and Rs. 53,656 as commitment charges on the above imports. The difference of amounts works out to Rs. 5,12,493. The assessee contended that the difference in the price is on account of fluctuation in the US dollar. However, he is li....

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....sessee was given the benefit. The Additional Commissioner of Commercial Taxes exercised his suo motu power under section 64(1) of the Karnataka Value Added Tax Act, 2003. After notice to the assessee, reviewed the order. He held, the dollar and rupee fluctuation is on account of foreign exchange rate determination by the Reserve Bank of India. Any increase on account of fluctuation would have to be borne by the importer. It would have to be paid by the importer. In the instant case, it cannot be said that the demand made by the respondent in Indian currency towards imports cannot be considered as part of purchase price due to increased payment and therefore, he set aside the order passed by the appellate authority and restored the ord....