TaxTMI 
TaxTMI 
2026 (3) TMI 472
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....he petitioners-Revenue and Sri P.E. Umesh, learned counsel for the respondent-Assessee. 2. This Sales Tax Revision Petition is filed by the State under Section 65(1) of the Karnataka Value Added Tax Act, 2003 (for short, "the Act"), assailing the order dated 28.02.2025 passed by the Karnataka Appellate Tribunal, Bengaluru (for short, "the Tribunal"), in STA Nos. 35 and 36 of 2024. 3. The respondent is engaged in the business of online trading in readymade garments, footwear, sportswear, and accessories. During the tax periods 2014-15 and 2015-16, the respondent failed to declare the entire interstate purchase turnover in the monthly returns filed in Form VAT-100. The goods purchased from interstate dealers were transported on the stre....
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....laced on record to contradict the findings of the Prescribed Authority. The FAA noted that the respondent-appellant claimed that the entire purchase turnover had been declared and was reflected in the returns; however, it was held that no documentary evidence was produced in support of such contention. 4.2 It is submitted that the Tribunal, without taking into consideration the non-cooperation of the assessee before the Prescribed Authority, proceeded to adjudicate the matter on merits in the absence of any supporting material. It is further submitted that, if the Tribunal was of the view that the impugned orders passed by the Prescribed Authority and the FAA were in violation of the principles of natural justice or were bereft of reason....
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....ts reply along with supporting documents. However, the respondent failed to participate in the reassessment proceedings. Consequently, the Prescribed Authority proceeded to complete the reassessment on the basis of the material available on record. 8. Aggrieved thereby, the respondent preferred an appeal before the FAA. Though various contentions were urged before the FAA, the same were not substantiated by any material evidence, as the findings recorded by the Prescribed Authority were based on the evidence available on record. Except to the extent of granting partial relief, the FAA rejected the appeal. 9. Thereafter, the respondent preferred an appeal before the Tribunal, inter alia, contending violation of the principles of natura....
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....or in proceeding to adjudicate the issues on merits after recording a finding of violation of the principles of natural justice. The material relied upon by the Tribunal appears not to have been made available to the Prescribed Authority for its comments or consideration. The initial stage of evaluation of evidence vests with the Prescribed Authority, which is the authority competent to record foundational facts. 12. Though the Tribunal is undoubtedly the final fact-finding authority, it cannot assume the jurisdiction of the Prescribed Authority by accepting evidence and recording findings for the first time, particularly in a case where the Prescribed Authority had afforded liberty to the respondent and the respondent failed to submit a....