2021 (3) TMI 1021

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Tribunal, Bengaluru [hereinafter referred to as 'the KAT' for short]. 2. Germane facts which are necessary for disposal of this Revision Petition are as under: Revision Petitioner is a retailer dealing in drugs and medicines and is registered under the Karnataka Value Added Tax Act, 2003 [hereinafter referred to as 'KVAT Act' for short]. In the retail shop, Revision Petitioner also sells cosmetics and allied articles besides medicines and drugs. Revision Petitioner filed necessary returns and claimed refund. The Commissioner of Commercial Tax vide order No.ADCOM (I&C)/CAS/CR-02/13-14/08 dated 11.07.2013 ordered for verification of claim and refund. As per the said order, while verifying the claim, the Commercial Tax Offic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ut jurisdiction. (b) A deemed assessment has taken place under Section 38(1) when monthly returns were filed. (c) The AA grossly erred in not applying the judgment of the Hon'ble High Court in Spencer's Case. The sale bills disclose the tax rate and actual amount of the tax collected is separated at the end of the day and accounted in book. Customers are made know that tax is collected @ 5% or 13.5% on each of the sale bills. (d) Medicines and other MRP label goods are not liable to tax under Section 4(1) but under Section 4(4). (e) The action of the AA is opposed to Section 4(4) since the section mandates that turnover is to be computed after reducing the tax collection or tax payable and Appella....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ant facts of the case. The main thrust on which the learned counsel for the Revision Petitioner is seeking for setting aside the order passed by the KAT is that the order passed by the Commissioner of Commercial Tax vide order No.ADCOM (I&C)/CAS/CR-02/13-14/08 dated 11.07.2013 did not authorise the AA for re-assessment but was only limited to the extent to the verification of refund claimed. The order of the Commissioner of Commercial Tax is extracted by KAT in the internal page 7 of the judgment. The translated copy of which is in vernacular. 7. Learned counsel for the Revision Petitioner has filed the translated copy of the said order which reads as under: "PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES (KARNATAKA), BANGALORE ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Commercial of Commercial Taxes (Karnataka), Bangalore To: Joint Commissioner of Commercial Taxes (Admn.) VAT-02, Bangalore -for needful action." On careful perusal of the said order passed by the Commissioner of Commercial Taxes, it is seen that though the Commissioner of Commercial Tax ordered for verification of claim of refund by the revision petitioner, what is method that is adoptable to verify the refund claimed is not mentioned in the said order. Further, the order also reads that the authorities were invested with the power on assessment, re-assessment and other related statutory proceedings. In the absence of any direction particularly to carry out the verification of refund claimed by the revision ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f revision petitioner to verify the refund claimed. It is in that process, the irregularities have been noticed by the AA. 10. Secondly, learned counsel is unable to point out what is the illegality committed by the AA when he has noticed the irregularities committed by the revision petitioner while claiming refund. Nor, the learned counsel for the revision petitioner is in a position to point out which of the provisions of the Act is violated by the AA while carrying out such an exercise. 11. The order of the Commissioner of Commercial Tax though mentioned that the refund claimed by the revision petitioner is to be verified, did not deter AA from reassessment in the process of verification of the refund claimed by the assesse. 12.....