Karnataka High Court
M/S Club House vs The Assistant Commissioner Of ... on 2 January, 2018
Author: Vineet Kothari
Bench: Vineet Kothari
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IN THE HIGH COURT OF KARNATAKA, BENGALURU
DATED THIS THE 02nd DAY OF JANUARY 2018
BEFORE
THE HON'BLE Dr.JUSTICE VINEET KOTHARI
WRIT PETITION Nos.65169-180/2016 (T-RES)
BETWEEN:
M/S CLUB HOUSE
TIN:29840119636
RACE COURSE ROAD
MYSURU - 570010
(BY ITS CHAIRMAN
M.L. KANTHARAJ URS, 44 YEARS).
... PETITIONER
(BY Mr. KESHAVA MURTHY T.N. ADV.,)
AND
1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES
(AUDIT)-1, VAT DIV., 'SESHADRI HOUSE'
DIWAN'S ROAD, MYSURU 570004.
2. THE COMMISSIONER OF COMMERCIAL TAX
GANDHINAGAR, BENGALURU - 560009.
3. STATE OF KARNATAKA
REPRESENTED BY ITS
PRINCIPAL SECRETARY TO GOVERNMENT
FINANCE DEPT., VIDHANA SOUDHA
BENGALURU - 560001.
... RESPONDENTS
(BY Mr. T.K. VEDAMURTHY AGA)
THESE W.Ps. ARE FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO, QUASH THE IMPUGNED
RE-ASSESSMENT ORDER PASSED U/S 39(1) OF THE ACT
Date of Order 02-01-2018 W.P.Nos.65169-180/2016
M/s. Club House Vs.
The Assistant Commissioner of Commercial Taxes & Ors.
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PASSED BY THE R-1 DTD 30.11.2016 AS IN ANNX-A LEVYING
TAX, PENALTY AND INTEREST ON INCOME RECEIVED BY IT
FROM OTHER CLUBS AS UNCONSTITUTIONAL AND ALSO AS
LACKING IN JURISDICTION, IN SO FAR AS THE PETITIONER IS
CONCERNED & ETC,.
THESE W.Ps. COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER
Mr. Keshava Murthy T.N. Adv. for Petitioner Mr. T.K. Vedamurthy, AGA for Respondents
1. The petitioner-Club House, Mysore, has challenged before this Court the impugned reassessment order passed by the Respondent- Asst.Commissioner of Commercial Taxes under Section 39 of the KVAT Act, 2003.
2. The Respondent-Authority has imposed VAT on the 'commission' received by the Petitioner-Club for conducting off-course betting of Horse races conducted by other Race Clubs in India for relaying this off-course betting, it pays certain percentage of net income of the commission which termed as 'royalty' and in the similar Date of Order 02-01-2018 W.P.Nos.65169-180/2016 M/s. Club House Vs. The Assistant Commissioner of Commercial Taxes & Ors. 3/4 manner, the other Race Clubs all over India also conduct off-course betting in respect of races conducted by Mysore Race Club, the present petitioner-assessee had received Royalty from other Clubs.
3. The only contention raised before this Court by the learned counsel for the petitioner-assessee is that it is the income of the assessee-club, which cannot be taxed under VAT law under the provisions of the KVAT Act, 2003, whereas the rival contention raised by the learned counsel for the Revenue Mr.T.K.Vedamurthy is that even 'intangible' goods in the form of rights to relay the Horse race conducted all over the country by the petitioner-Club is a taxable event and taxable goods which includes intangible goods for the 42nd Constitutional Amendment and therefore, the impugned order passed by the Assessing Authority is justified.
4. In view of the impugned reassessment order being appealable under the provisions of Section 62 of Date of Order 02-01-2018 W.P.Nos.65169-180/2016 M/s. Club House Vs. The Assistant Commissioner of Commercial Taxes & Ors. 4/4 the KVAT Act, 2003, this Court is not inclined to entertain this writ petition in its extraordinary jurisdiction under Article 226 of the Constitution of India and the writ petition is held to be not maintainable.
5. The petitioner-assessee has the effective alternative remedy to prefer the appeal against the said impugned reassessment order.
6. The writ petition is accordingly dismissed. If the appeal under Section 62 of the Act is filed within a period of 30 days from today, the question of bar of limitation will not be raised and subject to other conditions being fulfilled, the appeal may be heard on merits. No costs.
Sd/-
JUDGE Srl.