TaxTMI 
TaxTMI 
2026 (7) TMI 227
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.... No. 247/2017 passed by the Karnataka Appellate Tribunal (for short, 'Tribunal') whereby the Tribunal allowed the appeal filed by the respondent-assessee and set aside the orders passed by the Assessing Authority (AA) as well as the First Appellate Authority (FAA). 2. Brief facts of the case, as borne out from the records, is that, the respondent-assessee is a registered dealer under the Karnataka Value Added Tax Act, 2003 (for short, 'KVAT Act'), the Central Sales Tax Act, 1956 and the Karnataka Tax on Entry of Goods Act, 1979, engaged in the manufacture and sale of aluminium extrusions. In the course of manufacture, the assessee uses petroleum products such as furnace oil/fuel oil as fuel and claimed input tax rebate/input tax credit t....
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....emitted to the AA for a limited purpose of adopting the quantum of Non-Deductible Input Tax for the purpose of section 11(a)(5) read with section 11(a)(6), 14 and 17 as per the calculations made by the appellant, which method is approved as stated in illustration referred supra, for all the tax periods of 2008-09 and recalculate the liability with penalty and interest as applicable and to issue revised demand notices accordingly. 3. The Registrar of the tribunal is directed to comply with Regulation 53(b) of Chapter-IX of Karnataka Appellate Tribunal Regulations 1979 by communicating this order to the persons mentioned therein 4. The office is directed to send black the records to lower authorities immediately." Aggriev....
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....thority while determining the proportionate input tax rebate available to the assessee. The Tribunal, according to the State, wrongly interfered with the findings of the authorities below and incorrectly concluded that there was no excess claim of input tax credit on furnace oil used in captive power generation and manufacture of taxable goods. 8. According to the learned AGA, for the purchase of raw materials, VAT is paid at varying rates. On furnace oil, 4% VAT is payable under the VAT Act, whereas on natural gas and light diesel oil, the rate of VAT prescribed and payable is 6.5%, since the same are used for the manufacture of the final products. By placing reliance on Section 11, he submits that the tax credit claimed under that sect....
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....equent initiation of proceedings culminating in the order dated 16.10.2015 under Section 69(1) of the KVAT Act was clearly based on a mere change of opinion and not on any mistake apparent from the record, as required for invoking the rectification jurisdiction under the said provision. It was therefore contended that both the Assessing Authority and the First Appellate Authority had acted without jurisdiction in reopening a concluded issue. 11. It was further contended that the Tribunal had correctly appreciated the scope and ambit of Section 17(4) of the KVAT Act, 2003 and Rule 131 of the KVAT Rules while determining the admissibility of input tax credit on petroleum products used as fuel in the manufacturing process. The assessee had ....
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....d 39(1), read with Sections 72(2) and 36 of the KVAT Act, seeking reassessment for the period 2008-09, disallowing the input tax credit on petroleum products to the tune of Rs. 39,13,873/-, besides levying penalty and interest of Rs. 3,91,387/- and Rs. 41,11,831/-, respectively. Though a reply to the notice was sent by the respondent-assessee, the Appellate Authority issued the final rectification order under Section 69(1) on 16.10.2015, demanding a total sum of Rs.10,06,308/-. Hence, the dispute arose. 14. Before dwelling into the legality of the method adopted for determining the non-deductible input tax for the tax periods in question by the Appellate Authority, as confirmed by the First Appellate Authority, it is relevant to observe ....
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....order on the same question in the case of one assessee and question its correctness in the case of some other assessees. The Revenue cannot pick and choose. 6. It was held in Birla Corpn. Ltd., as under: "5. In the instant case the same question arises for consideration and the facts are almost identical. We cannot permit the Revenue to take a different stand in this case. The earlier appeal involving identical issue was not pressed and was therefore, dismissed. The respondent having taken a conscious decision to accept the principles laid down in Pepsico India Holdings Ltd. cannot be permitted to take the opposite stand in this case. If we were to permit them to do so, the law will be in a state of confusion and will plac....