TaxTMI 
TaxTMI 
2025 (7) TMI 64
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....o.351440918 AD SMR and revised proceedings dated 24.12.2024 raising the following substantial questions of law: 1. Whether validity of jurisdictional power in invoking Section 64(1) of KVAT Act, 2003 in the situation where the matter reached finality under the Scheme KSS, 2021? 2. Validity of disallowance of deduction claimed towards labour and like charges in the presence of Books of Account & allowing the standard deduction of 30% as per rule 3(2) of the KVAT Rules 2005 by the respondent and not allowing exemption towards deemed VAT collected amount & gross profit earned towards labour & like charge expenses incurred by the appellant? 3. Validity of disallowance of the deduction claimed towards input tax credit ....
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....dated 24.08.2021 to the extent of labour and like charges and also claim of ITC and TDS credit on coming to the conclusion that the assessee had maintained Books of Account and other documents to prove the claim. For the balance demand to which the assessee had not objected, the First Appellate Authority confirmed the demand along with interest and penalty, with an observation that the assessee could opt for Karasamadhana Scheme, 2021 for waiver of penalty and interest. 3. The Karasamadhana Scheme, 2021 was introduced under the Government Order dated 29.03.2021 (Annexure-D) which granted 100% waiver of arrears of interest and penalty. The appellant-assessee filed an application for availing the benefits under Karasamadhana Scheme, 2021 w....
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....e assessee-appellant would submit that the assessee-appellant availed Karasamadhana Scheme, 2021 which was accepted by passing order on 28.12.2021. It is the specific contention of the appellant that subsequent to acceptance of his application under Karasamadhana Scheme, 2021 and after waiving interest and penalty, the respondent could not have initiated suo-motu revisional proceedings under Section 64(1) of KVAT Act. It is submitted that if the revisional authority exercises its power under Section 64(1) of KVAT Act subsequent to extension of benefits of Karasamadhana Scheme, 2021, the purpose and object of the said scheme would be defeated. It is submitted that the assessee-appellant submitted application under Karasamadhana Scheme, 2021,....
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.... was partly allowed and for the remaining grounds which were not allowed by the First Appellate Authority, demand was raised along with interest and penalty. In the meanwhile, Karasamadhana Scheme, 2021 was introduced under notification dated 29.03.2021. The assessee-appellant filed application to avail the benefit under Karasamadhana Scheme, 2021 well within the time prescribed under the scheme. It is also to be noted that the time to avail benefits of scheme was extended further in view of lockdown due to COVID-19. 10. A dealer shall not be eligible to avail the benefits of Karasamadhana Scheme, 2021 in terms of clause 5.7 of the scheme. Clause 5.7 of Karasamadhana Scheme, 2021 reads as follows: "5.7. The dealer shall not be e....
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....uo-motu revision was pending against the assessee-appellant as on the date of notifying the Karasamadhana Scheme, 2021, but suo-motu revision was initiated much subsequent to accepting and passing order in favour of the assessee-appellant under Karasamadhana Scheme, 2021. 12. If the revisional authority is permitted to initiate proceedings under Section 64(1) of KVAT Act subsequent to granting benefit under Karasamadhana Scheme, 2021, the very purpose and object of introducing Karasamadhana Scheme, 2021 would be defeated. When the proceedings against the appellant-assessee for the period from April 2016 to March 2017 has culminated and attained finality under Karasamadhana Scheme, 2021 by passing order dated 28.12.2021, it is unreasonabl....