Court Examines ITC Disallowance Under Karnataka VAT Act for Liquor; Emphasizes Section 10 Compliance and Full Output Tax Collection.

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....Levy of KST Act and KVAT Act on Liquor - right for disallowing the ITC claimed by the petitioner - There is no cavil with respect to the legal principle enunciated by the Hon’ble Apex Court regarding the speech made by the Hon’ble Finance Minister in moving the Bill would be significant in interpreting the provision. But the input tax credit has to be determined as per section 10 of the KVAT Act. There was no bar for the assessee to collect the output tax in its entirety by its buyers. - HC....