TaxTMI 
TaxTMI 
2016 (6) TMI 503
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....hoto negatives running their Photo Studios within the State of Karnataka. They are registered under the provisions of the Karnataka Value Added Tax, 2003 (for short KVAT Act, 2003). 3 They contended before the respondent Department that they were not liable to pay any tax under the provisions of the KVAT Act, 2003 because what was provided to the customers was only a service and use of goods in the process viz., use of photograph paper and certain chemicals was only incidental and there was no execution of any Works Contract as such and therefore, question of levy of tax under the earlier provisions of the Karnataka Sales Tax Act or the substituted new law viz., Karnataka Value Added Tax Act, 2003 did not arise in their case. 4 The Divisi....
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....nd the judgment of the High Court is clearly unsustainable. The High Court did not even deal with various facets of the issue in their correct perspective, in the light of subsequent judgments of this Court with specific rulings that Rainbow Colour Lab's case is not longer a good law. 29 The impugned judgment of the High Court is accordingly set aside, the present appeal is allowed and as a result thereof, the writ petitions filed by the respondents in the High Court are dismissed holding that Entry 25 of Sixth Schedule of the Act is constitutionally valid. There shall, however, be no order as to costs. The Assessing Authority, accordingly, by the orders impugned in the present batch of petitions, passed assessment orders levying the....
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....sing Authority, while the impugned orders were passed because they were contending all through that they are not at all liable to pay any tax under the provisions of the VAT Act, 2003. They, therefore, submitted that the Assessing Authority should be directed to at least, even now, consider their claim of input tax credit and other deductions, in accordance with law. 7 Learned counsel representing the Revenue however, submitted that while the question of exigibility to tax under the provisions of the VAT Act, 2003 is now beyond the pale of doubt in the case of the petitioner assessees after the aforesaid Supreme Court decision rendered on 30th January, 2015 in the case of Pro Labs (supra) reversing the judgment of the Division Bench of thi....
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....assessees is now beyond the pale of doubt and as rightly submitted by the learned counsel for petitioner assessees that they cannot possibly now contend against the levy of output tax itself in the present cases, the process of assessment for determining the correct tax liability of the petitioner assessees under the provisions of the VAT Act, 2003 cannot be left half way through only. The question of liability to pay tax under the provisions of VAT Act, 2003 has been determined by the Hon'ble Supreme Court finally in the cases of the assessees only now on 30th January, 2015. If the claim for input tax credit and other deductions from the gross turn over on account of labour charges, etc., could not be made by them during the assessment....