Karnataka High Court
Vijayanagar Minerals Pvt Ltd., vs Dc Of Commercial Taxes (Audit) on 21 July, 2009
Author: Mohan Shantanagoudar
Bench: Mohan Shantanagoudar
1 1!? THE H36}! COURT OF KARHATAKA CIRCUIT BENCH AT DI-IARWAD DATED THIS THE 21» mar or J'GLY, I A. BEFORE THE Kozvsm MR..ms*rIc1;-5 woHg5¢"'sHAnT'gN;§<§t$:I:iJ§:§i'.' WRIT mrrrrrea No.13612-Iaézsz _ cm w.ps.xo.s24s5.9'6;2oLs9 t'?~--R_§_8}-3 . . V {In W.Ps.No. 13612-612312009 Between:
VEJAYNAGAR MIPISERALS Pm' .
JSW TOWNSHIP v:DYANAGaRv,.,T"';.
TORANA<:,}ALLU#~S83 2:25. .4 sAN13UR'IfAL:;K,. " "
BELLARY E3IS'"1'RIC'I', _ _ (REP. BY ITS'*¥)IRECTOR" .A .
$121.9, K1213]-ENE" .GOWDA, 592:9 ABOUT 63 YRS,j .{By srs;$%;.n.i:mmku;:':a:,§;5,g.av, for . ésa;s.z.sanmgu::, .&,d.v.,) L 'DE?i;T?'c§'?;:s.§A§;éiss:0NE:e 0? C£3!§4§§e{E:i€C;E(-'*4, TAXES (AUDETL navmmgam nxvzszcam, co-2s:x.I'»:.:E§.<::;a.1, TAXES BUILDINGS, V 'ADEVARRJ URS LAYOUT 'A' QLQCK 5f m*\mNaGER --. 5?? cm.
kgommxsszomm 0;? COMMERCIAL TAXES-, ' ._..E{AR1%EA.'}T'AKA, commaacxm, TAXES BUILDiN(}S, GAWJHINAGAR, BANGALORE}-«S60 009, (33! smt. K.vznmvA'rm, Resin) 2 , . PETITIONER ' . . %SPOR'BEKT8 2 This pefition is filed under Articles 226 of the Constitution of India praying to quash the impugn£:d__ ordér dt.31.03.2GO9 gassed by the H-1 Dy. Commissicznér of Commercial taxesfiudit), Davanagere Division, Davana.g§ere~V.iI1 the getitioncr ---- company's case undm" the pmvisé-ibimy bf sactions 39(1)(a), 72(2) and 36 of the KaI"nata1<a_-';fa1u'€-'ii£1ti:tvr1 _ Tax Act, 2003 for the period 01.04.2006 £0 3I.O3_,V2():(}7 L'1:s:=.iL2g Am3.exure«~D azixd also to quash tht:AA»Vconseqii€';*1t1j,r, "::iema11d"
notices in form 180 bearing TIN no.2905oc4_33;45.; 4:ss'w:d.V by' F.'--1 Dy. Commissioner in the pet:itione_r's :c:1s.+3 fer the"m0xji_h5::1aJ:' June 2006, Juiy 2905 August 2006, $f§I)i;'3§IIfi3EI"2vO05,'~OC;tO1)f;3'i'~_u 2906, January 2007, Febmm: 2.907 and' Maxch _being_ 1 Azmexures-E to M and etc, In W.Fs.Ho.624-85-496 Z Between:
VIJAYNAGAARVM;N£RA£;;s.PR!vATE LIME-TED, JSW Towrwsam'-'._.. --. -- vznvanaczws, ' ' ~ TORANAGALLU - 3233 'miss. ., "
SANDUR *rA£;U_x; V " A = BELLARY DiSTRiCT., ;. _ ~ (REP, Es? FPS DIRECTOR FINANCE '~ s_:2:.A}:§£~L $.;;)<>I;3, AGEDV-5aB«()UT 42 YRS,} mpz-rrrxozzmz ' {Ey: Sfi£fi,EB 512.. A312. FOR A ":~;z_i.ET.1,fs,s;:rzur:§1i;, Adv.,) 1:, i::§:§uTY COMMISSIONER OF CQMQERCEAL TAXES {AUDIT}, ., " * DAVANAGERE DIVISION, w _ CT:OMME¥€CEAL TAXES BUILiZ)1NGS, ' QEVARAJ URS LAYOUT 'A' BLOCK DAVANAGER -- 5?? 005.
u COMMISSIONER OF COMMERCIAL TAXES, KAIi'NA'i'AK£x, COMMERCUKL TAXES BUILDENGS, GANDHINAGAR, BANGALORE--56O G09' RESFONDEKTS
2. The peti'£:ioner--Company is engaged in 1:1:::i1:1i;:1g, processing and exporting of ores' "efo; .,: '_:'~a,I1 r;1 i'i;,is_.va'"
registered deaier under the provisiofxs of Added Tax Act, 2003 (for short7t'n.e 'Ac?€;._ in t1;eé' eo1v1,rMse of a business, the petitioner - compa1u1uj.*'V« is one from the mines of M] which is an undertaking of Athe M] s. Mysore Minerals Limiteei.;"'f§:'s1so_Aa€;dea1e1e::se§i2.te%ed under the Act. The iron ore Mfgsore Minerais to the petifioneféoompssiy under the provisions of the Ac1;, --. Commissioner in pursuance :5» assigiv-uzienf the Joint Commissioner of Taxes "f:oo--.'--.<"u1a the proceedings in the case of 'pe'i.i3;ioner~eon§psTr1;r for the period 2005 -~ 2006 and 2006 -~ 20{)'?.." I:ov fies: the reiated books of accounts of the 'pe'£:ifio1:it:g"4'e:311.if>a11y were verified. As mentioned above, the V' 'petitiozger company is purchasing iron ore fiom Mysore anci dozing the aforementioned period of 2005 to " the Mysore Minerals haé. efiected sales of iron are to the u xggxetiticzuzer -~ oompan}; by charging and Cofiecfing saies tax (VAT) S if 12.5% and the tax invoices are issued in respect of such txazrxeaetions. in terms of the provisions ofSect:ioI1 10 (233? the Act, am; tax collected by a registered dealer uncier on the sale of any gooés by him to another ' would constitute input tax in the haxzgele of sueh _---:;i'ea1e:'. and by virtue of such collection of tax sefliiigf "de:11e;e;'t1ig§' tax so charged anti collected ei.igih.le;fo_if; of input tax credit] refund iaytlze is bitzyingt-t11.e goods in question, subject to the iootzditioti' ets etiinuléited in Section 18 (4) of the it ti1evii3etit§.0nerwcom13any, it had c§a:En:1ed to the tax charged and coiiected by Z§§j£somV'Mi£;_e193iS on its sales of iion ore to the "eetiez%:ier:eoz£apmzy." * ..... _. « _,A:§ VV:£§efo1':éii:eif;I:ioI1ed, the notices were issued to the petifioiier t313ée¥;e:""¥the provisions of Section 39 (1), '?2 {2} and 36 the A::;t':.as per A,:mexu:re~A. In the saié xiotioe, the 15* ie$§}oi§k§«ent has mferxefi to the purchases of Iron Ore eflected the petitioner from Mysore Minerals et<:., Certain ether uofaetors are also foxtheoming in the said notice. The written gr/B O» objections are filed by the petitioner. Thereafter,__i;1i:.ei orders are grassed. J _
4. The orders in question prima faeie 'be to the provisions of Section 47 (4~):&3f»the "Acti ie,*e1ié1i€§ent-- ii authority has devieed 3; .}11€'W 2 piima facie appeais contmxy to the sgfi:;it:i.t0ry provisions.
Since the pixicefilute is ihe autitiority will have to pass procedure. As the petitiQI1€r_A"i1£ié of input tax, he cannot claim refiizid ' paiid by him in excess of his statutory liability? ii; 1*' respcmdent, by vi1"tL11e of the V oifierygaiits to oiiereejvme ihe statutory pmvisions of Section 47 of has resulted in miscarriage efjusfice. Be tfiat'eL_:3 this Court proposes to remit the matter to the original aaiiihezitywresponéent No.1, this Court desists itseif " " ~: A"--..iffi:1;:1T§:<;>m.. menting anything on the mexits of the matter fsxrtiher. i 7iI'32eV'H;i.eiter has to be redone by the Z" respo:adent--a1zth0rity in .iaee_rinianee with law more pafiticniariy having regaxtl to the ~ _ ipxtnvisions of Section 47 (4) of the Act. . Aecerdixigiy, the following order is made:
g/'"'\..
The impugned orders Ann6xure~D dated bath the Writ petitions stand quas§1e:.d_." this x demand notices §ssued pursuant in 3':hc stand quashed. it is opal for 1:?i_e~..1_m= 'fresh " V L' orders after hetaring the pefitioncr_§L:3i'-:;f_<:cQrdafiCc« vvfiaxxr.
5. Wifln the above: obse'i'§*21tiéf;--:.=;;':11es}é'--i§:1fit'_§petitions stand disposed of.
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