TaxTMI 
TaxTMI 
2015 (4) TMI 35
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.... concerned. 2. The petitioner is an authorized dealer engaged in the business of sale of vehicles manufactured by M/s Maruthi Udyog Ltd. They also undertake services of the said cars. The petitioner is a registered dealer and is assessed to tax under the provisions of the Karnataka Value Added Tax Act, 2003 (for short hereinafter referred to as 'the KVAT' Act). The manufacturing company sells units of car to the petitioner for demonstration and test drive to get an idea of the units and also the physical appearance. These vehicles are called as demo vehicles. The demo vehicles are registered in the companies name and are the assets of the petitioner. The petitioner had paid consideration on the purchase of the demo cars and included the ....
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....the impugned order contended firstly a case for reviewing the order as contemplated under Section 63 (8)of the Act is not made out and therefore, it is a case of irregular exercise of review power by the Tribunal. On that ground, the impugned order requires to be set aside. Secondly, it was contended used cars does not necessarily mean cars used by purchasers from the petitioner. These demo cars are purchased by the petitioner and used for giving demonstration to the intending purchaser and after a lapse of time they are re-painted and sold. They also fall within the definition of used cars and therefore, the Tribunal was not justified in not extending the benefit of the said notification and therefore, she submits viewed from any angle, th....
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....nce is placed reads as under: NOTIFICATION No.FD 300 CSL 2005, dated 24.10.2005 Karnataka Gazette, Extraordinary, dated 24.10.2005 In exercise of the powers conferred by Sub-Section (3) of Section 4 of the Karnataka Value Added Tax, 2003 (Karnataka Act 32 of 2004) the Government of Karnataka hereby reduces with immediate effect, the tax payable by a dealer under sub-Section (1) of Section 4 of the said Act on the sale of "used car" to four per cent of the difference between the taxable turnover in respect of such sale and the amount paid towards purchase of such car subject to the condition that - (i) no declaration of input tax is claimed by the dealer in respect of purchase of any goods used in the car sold; and &n....
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....he purchase and sale of used cars is entitled to the benefit of the notification. The notification dated 24.10.2005 applies to sale of used cars. The tax payable is 4% of the difference between the taxable turnover in respect of such sale and the amount paid towards purchase of such car. Therefore, it applies to a case where a dealer purchases a used car and then sells such car. Therefore, it has no application to a case where a dealer purchases a car from the manufacturer. However, by notification dated 30.03.2007, whatever ambiguity was there in the notification dated 24.10.2005 has been clarified. 10. In the instant case, it is not in dispute that the dealer is in the business of selling cars manufactured by Maruthi Udyog Limited. The....