2021 (3) TMI 952

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....nal was right in:   (i) upholding the orders passed by the Assessing Authority and the first Appellate Authority to the extent questioned herein? (ii) holding that the petitioner has collected tax from its purchaser, that is Toyota Kirloskar Motors Ltd. Within the meaning of Section 47(1) of the Karnataka Value Added Tax Act, 2003? (iii) applying the provisions of Section 47(3) of the Karnataka Value Added Tax Act, 2003 and forfeiting excess tax amounting to Rs. 49,13,539/- paid by the petitioner in the month of October 2007 despite the petitioner having collected no amounts as tax or purporting to be way of tax from its purchaser, that is Toyota Kirloskar Motors Ltd.? (iv) holding that the petitioner is disentitled from claiming input tax credit that it is eligible to avail under the provisions of Section 14 of the Karnataka Value Added Tax Act, 2003 read with Notification No.FD 115 CSL 2007 (11) dated 30.03.2007, merely because the petitioner had inadvertently understated in its input tax credit eligibility in its returns filed for the relevant tax periods and had failed to rectify the bona fide error in revised returns filed within the pr....

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....sions of this Court in 'M/s. INFINITE BUILDERS AND DEVELOPERS Vs. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES, ZONE-II, GANGHINAGAR, BANGALORE' (2014) 68 VST 24 (KAR) and 'STATE OF KARNATAKA Vs. M/s. CENTUM INDUSTRIES PRIVATE LIMITED' ILR 2015 KAR 57. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the petitioner, while inviting the attention of this Court to the statement of objects and reasons for enactment of the Act provides that the new legislation has been introduced to replace the old sales tax system for bringing in reforms in commodity taxation. It is further submitted that the new legislation provides for set off of all taxes paid at earlier point in respect of goods sold against tax payable, defined as output tax, at any point, the set off scheme being called as input rebating. Our attention has also been invited to Section 10(2) of the Act. The aforesaid Section provides that subject to input tax restrictions, input tax means the tax collected or payable on purchase of any goods for use in the course of business. It is also pointed out that Section 10(3) provides that subject to input tax restrictions, the net t....

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....ted that the duty of the Assessing Officer is not merely to impose tax i.e. lawfully excisable but also to give the assessee the benefit of any reduction or exemption that may become due to them upon facts actually found to be true by the Assessing Authorities, whether or not the assesses, out of ignorance or by mistake, make claim thereto. It is further submitted that the doctrine of estoppel cannot be invoked in matters of taxation. Insofar as claim under Section 47 for an amount of Rs. 49,13,539/- is concerned, it is pointed out that the tax has not been collected by the petitioner from Toyota Kirloskar Motors Limited which is evident from the communication dated 19.02.2010 and therefore, the provisions of Section 47(1) of the Act were not applicable to the fact situation of the case. In support of aforesaid submission, reliance has been placed on the decisions in 'GIRIDHARLAL PARASMAL Vs. THE STATE OF MYSORE' 1967 SCC ONLINE KAR 195, 'BHANDARI METALS AND ALLOYS (P) LTD. Vs. STATE OF KARNATAKA' (2004) 136 STC 292, 'STATE OF KARNATAKA Vs. K.BOND POLYMERS PRIVATE LIMITED, BANGALORE' (2012) 73 KAR.L.J. 429, 'R.S.JOSHI, SALES TAX OFFICER, GUJARAT Vs. AJIT....

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....e input tax deductible by him as may be prescribed in that period and shall be accounted for in accordance with the provisions of Chapter V. 35 (4) If any dealer having furnished a return under this Act, other than a return furnished under sub-section (3) of Section 38, discovers any omission or incorrect statement therein, other than as a result of an inspection or receipt of any other information or evidence by the prescribed authority, he shall furnish a revised return within six months from the end of the relevant tax period except when such revised return is on issue of a debit note under Section 30, subject to sub-section (2) of Section 72. 47. Payment and disbursement of amounts wrongly collected by dealer as tax.- (1) Subject to Section 30, where any amount is collected by way of tax or purporting to be way of tax from any person by any dealer, whether knowingly or not, such dealer shall pay the entire amount so collected, to the prescribed authority within twenty days after the close of the month in which such amount was collected, notwithstanding that the dealer is not liable to pay such amount as tax or that only a part of it is due from him as tax unde....