2014 (6) TMI 869

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....e the order passed by the authorities below directing the Assessing Authority to workout input tax on consumables used in Dyeing and Printing of textiles. 2. The assessee is a Private Limited Company registered under the provisions of Karnataka Value Added Act, 2003 (hereinafter referred to as 'the Act' for short). It is engaged in the Printing and Dyeing of fabrics. The place of business of the respondent/assessee was inspected by the Assessing Authority on 07-10-2009. The respondent had admitted the tax liability only on 0.75% of the turnover and the rest of the turnover was claimed as exemption of tax representing it as receipt of labour and like charges. The proceedings were initiated under Section 39(1) of the Act. After hearing the a....

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....ith. 3. Per contra, learned counsel appearing for the assessee argued in support of the impugned order. 4. The assessee is engaged in the business of Printing and Dyeing of fabrics on the basis of the works contract. The assessee has purchased the consumables for which it has paid input tax and claimed deduction on the said input tax out of the output tax payable. The question is, whether the assessee is entitled to the same? This court had an occasion to consider the said question in the case of STATE OF KARNATAKA v/s ASHOK IRON WORKS PRIVATE LIMITED in STRP No.204 & 217-224 of 2011 decided on 17th February 2014 interpreting Sections 10 and 11(5) of the Act. It was held that, if any tax is paid on purchase of goods that are despatched ou....