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Karnataka High Court

The Pruthvi Stones vs The Government Of Karnataka on 11 July, 2014

Author: A.N.Venugopala Gowda

Bench: A.N.Venugopala Gowda

                           :1:


          IN THE HIGH COURT OF KARNATAKA
                   DHARWAD BENCH
       DATED THIS THE 11 T H DAY OF JULY 2014

                        BEFORE

THE HON'BLE MR.JUSTICE A.N.VENUGOPALA GOWDA

        WRIT PETITION No.63952 OF 2010 [T-RES]
                          AND
      WRIT PETITION Nos. 63971-974 OF 2010 [T-RES]


 BETWEEN:

 1.     THE PRUTHVI STONES
        SITUATED AT HOUSE NO. 48, HIRE-UPNAL
        POST: BALAKUNDI, TQ: HUNGUND - 587125.
        R/BY ITS PARTNER
        MRUTYUNJAYA S/O SHEJHARAYYA SARANGAMATH
        AGE: 33 YEARS, OCC: BUSINESS & AGRICULTURE,
        R/O HOUSE NO.48, HIRE-UPNAL,
        POST: BALAKUNDI, TQ: HUNGUND - 587125,
        DIST: BAGALKOT.

 2.     THE PRUTHVI EXPORTS
        SITUATED AT HOUSE NO. 48, HIRE-UPNAL
        POST. BALAKUNDI, TAL. HUNGUND
        REP. BY ITS PROPRIETOR
        MRUTYUNJAYA S/O SHEKHARAYA SARANGAMATH
        AGE: 33 YEARS OCC: BUSINESS & AGRICULTURE,
        R/O HOUSE NO.48, HIRE-UPNAL,
        POST: BALAKUNDI, TQ: HUNGUND - 587125,
        DIST: BAGALKOT.

 3.     THE PREMIUM GRANITES
        SITUATED AT SY NO. 57/1A+1B/3
        PLOT NO. 3 & 4, POST: BALAKUNDI,
        TQ: HUNGUND, R/BY ITS PROPRIETOR
        RANGAPPA S/O RAMAPPA TALEWAD
                          :2:


     AGE: 35 YEARS, OCC: BUSINESS & AGRI
     R/O SY. NO. 57/1A+1B/3 , PLOT NO. 3 & 4
     POST: BALKUNDI, TQ: HUNGUND-587125,
     DIST: BAGALKOT.

4.   THE NAVEEN GRANTIES
     SITUATED AT CTS. NO. 3154, WARD NO. 3,
     RAGATI PETH, POST: ILKAL, TQ: HUNGUND
     R/BY ITS PROPRIETOR
     PRAMOD S/O VIJAYKUMAR HANCHATE
     AGE: 34 YEARS, OCC: BUSINESS & AGRICULTURE
     R/O CTS. NO. 3154, WARD NO. 3, RAGATI PETH,
     POST: ILKAL, TQ: HUNGUND - 587125,
     DIST: BAGALKOT.

5.   THE CRYSTAL GRANITES
     POST: ILKAL, TQ: HUNGUND
     R/BY ITS PROPRIETOR
     CHANDRASHEKAR V. NADIG
     AGE: 33 YEARS, OCC: BUSINESS & AGRICULTURE
     R/O POST. ILKAL, TQ: HUNGUND,
     DIST: BAGALKOT.
                                     ... PETITIONERS
(BY SRI. SHRIHARSH A NEELOPANT, ADV.)

AND:

1.   THE GOVERNMENT OF KARNATAKA
     COMMISSIONER OF COMMERCIAL TAXES
     VANIJYA THERIGE KARYALAYA
     GANDHINAGAR, BANGALORE.

2.   THE COMMISSIONER OF COMMERCIAL TAXES
     LVO (LOCAL VAT OFFICE) - 420, BAGALKOT.
                                     ... RESPONDENTS
(BY SRI. M. KESHAVAREDDY, AGA)

       THESE WRIT PETITIONS ARE FILED UNDER
ARTICLES 226 & 227 OF CONSTITUTION OF INDIA
PRAYING THIS HON'BLE COURT TO SET ASIDE THE
                                 :3:


IMPUGNED      NOTIFIACTION            BEARING        NO.    ADCOM
(I&C)/AC/CR.22/10/11 DATED: 24-05-2010 AS PER
ANNEXURE-D ISSUED BY THE RESPONDENT NO.1
IN SO FAR AS IT MANDATES THAT EVERY DEALER
REGISTERED        UNDER         THE     KARNATAKA           VALUE
ADDED TAX ACT, 2003 SHALL ENTER THE DETAILS
OF SUCH GOODS; IN THE FORMAT APPEARING IN
ONE OF THE DEPARTMENTAL WEBSITE NAMELY;
http;vat.Karnataka.nic.in/,http;//164.100.80.20/v
at505,      http;//vat505,             http;//vatkar.gov.in/,
BEFORE THE MOVEMENT OF GOODS COMMENCES
AND   IN    SO   FAR     IT    MANDATES         TO    TAKE      THE
DELIVERY     NOTE       IN    FORM    VAT   515       FROM      THE
DEPARTMENTAL; WEBSITE OF RESPONDENT NO.1
IN THE INTREST OF JUSTICE AND EQUITY.


      THESE      WRIT    PETITIONS        COMING           ON   FOR
PRELIMINARY HEARING IN 'B' GROUP, THIS
DAY, THE COURT MADE THE FOLLOWING: -


                             O R D E R

The petitioners are dealers running the business in the sale of commodities like rough granite, polished granite tiles and slabs, etc. The petitioners have got registered under Section 22 of the Karnataka Value Added Tax Act, 2003 and :4: also under the provisions under the Central Sales Tax Act, 1956 before respondent No.2. Respondent No.1 having issued a notification dated 31.12.2009 prescribing that "Every dealer registered under the Karnataka Value Added Tax Act, 2003 and who is required to carry a delivery in form VAT 505 or form VAT 515 for transporting goods, may obtain a delivery note in form VAT 505 for transportation of goods, electronically from 1 s t January 2010, issued another Notification dated 24.05.2010 providing that every dealer registered under the Act who dispatches any of the goods mentioned, as a result of sale, whose value exceeds twenty thousand rupees, shall enter the details of such goods in the format appearing in one of the departmental web-sites before the movement of goods commences.

2. Challenging the Notification dated 24.05.2010, as at Annexure 'D', mandating a dealer registered under the Karnataka Value Added :5: Tax Act, 2003, to enter the details of such goods in the format appearing in one of the departmental web-sites before the movement of goods commences and insofar as it mandates to take delivery note in form VAT 515 from the departmental web-site of respondent No.1 only, this writ petition was filed.

3. A mandamus was also sought as against respondent No.1, to conform to its earlier Notification dated 31.12.2009 as at Annexure 'C', which gives an option to the dealer to obtain a delivery note in form VAT 505 or form VAT 515 for transportation of goods and to permit the petitioners to issue delivery note manually.

4. The matter was heard in part on 02.07.2014 and 04.07.2014.

5. In view of the difficulties which the petitioners are stated to have faced in switching over to the new system vide Annexure 'D', :6: respondent No.2 was directed to display the operation. Accordingly, the officials of respondent No.2 gave a demo of the operation of the software relating to the notification as at Annexure 'D', which was viewed in video conference room of this Bench by me as well as Sri.Shriharsh A.Neelopanth, learned advocate for the petitioners and Sri.M.Keshavreddy, learned AGA for the respondents. An objective and paperless self- policing system for tax compliance has been introduced.

6. Later, when the matter was taken up for further hearing, in view of the advanced software which has been brought in and it being hassle free and also user friendly, in the matter of implementation of the impugned notification as at Annexure 'D', Sri.Shriharsh A. Neelopant, learned advocate for the petitioners, submitted that, on account of the fact that the 2 n d respondent has :7: introduced user-friendly M-Sugama option, these writ petitions may be disposed of as not pressed.

Submission of the learned counsel is recorded and the writ petitions are disposed of as not pressed.

No costs.

SD/-

JUDGE RK* Ct: DH/-