Karnataka High Court
M/S Bumi Geo Engineering Limited vs State Of Karnataka on 5 December, 2023
Author: P.S.Dinesh Kumar
Bench: P.S.Dinesh Kumar
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NC: 2023:KHC:43911-DB
STRP No. 36 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF DECEMBER, 2023
PRESENT
THE HON'BLE MR JUSTICE P.S.DINESH KUMAR
AND
THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA
STRP NO. 36 OF 2023
BETWEEN:
M/S BUMI GEO ENGINEERING LIMITED
NO.127/6, IST FLOOR, BULL TEMPLE ROAD
K.G.ROAD, BENGALURU-560 019
REP. BY SENIOR MANAGER ACCOUNTS
SRI K. THANGA THAMBI ...PETITIONER
(BY SRI. ATUL K ALUR, ADV.)
AND:
STATE OF KARNATAKA
REP.BY COMMISSIONER OF COMMERCIAL TAXES
VANIJYA THERIGE KARYALAYA-1, 9TH MAIN
GANDHI NAGAR, BENGALURU-560 009 ...RESPONDENT
(BY SRI.SHAMANTH NAIK, HCGP)
Digitally signed by
THIS STRP IS FILED UNDER SECTION 65(1) OF THE
MALA K N
KARNATAKA VALUE ADDED TAX ACT, 2003 AGAINST THE
Location: HIGH COURT JUDGMENT DATED 05.06.2023 PASSED IN STA No.206/2017
OF KARNATAKA ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL AT
BENGALURU, DISMISSING THE APPEAL AND CONFIRMING THE
ORDER DATED 09.02.2017 PASSED IN VAT A.P No.49-16-17
(A.Y.2012-13) ON THE FILE OF THE JOINT COMMISSIONER OF
COMMERCIAL TAXES (APPEALS-3), BANGALORE, DISMISSING
THE APPEAL AND FILED AGAINST THE RE-ASSESSMENT
ORDER DATED 15.06.2016 PASSED BY THE DEPUTY
COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-3.6,
BANGALORE, FOR THE TAX PERIOD OF APRIL 2012 TO MARCH
2013.
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NC: 2023:KHC:43911-DB
STRP No. 36 of 2023
THIS PETITION, COMING ON FOR HEARING, THIS DAY,
P.S.DINESH KUMAR J., MADE THE FOLLOWING:
ORDER
This petition is directed against judgment dated
05.06.2023 in STA No.206/2017 (Annexure-A)
passed by the KAT1, Bengaluru.
2. Heard Shri Atul. K. Alur, learned Advocate
for the assessee and Shri Shamanth Naik, learned
HCGP for the Revenue.
3. Learned Advocate for the assessee
submitted that the assessee undertakes contract
works for Metro Project. He has obtained certificate
under Form VAT-7 on 15.07.2023 for composition
scheme with effect from 03.09.2011 as per
Annexure-C. Assessee filed its returns in form
VAT-100 instead of VAT-120. The assessing
authority without noticing the fact that the assessee
was entitled for composition, has held that the
assessee has failed to discharge the tax liability at
Karnataka Appellate Tribunal
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14.5%. Shri Alur argued that no reasons are
recorded in the orders passed by the original
authority. On appeal, the appellate authority has
confirmed the order passed by the original authority
(Annexure-G) without appreciating the fact that the
order passed by the original authority is bereft of
any reasons. He submitted that if assessee's case is
considered under VAT-100, assessee will be entitled
for refund. With these submissions, he prayed that
assessee may be granted an opportunity to place the
correct facts and to produce the available books
before the original authority.
4. Shri Shamanth Naik argued opposing the
petition.
5. We have carefully considered the rival
contentions and also perused the records.
6. Annexure-C is the certificate issued by the
Revenue which clearly shows that the assessee has
opted payment of tax under composition scheme. In
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the assessment order dated 15.06.2016 (Annexure-
H), the Assessing Officer has recorded that on
verification, it is noticed that instead of discharging
tax liability at 14.5%, the assessee had discharged
the same at 4% and evaded tax. This finding is
disputed by learned Advocate for the assessee on
the ground that the assessee is entitled to pay tax
under composition scheme which is only at 4%.
The appellate authority ought to have considered
this aspect. However the appellate authority has
dismissed the appeal without examining the said
contention. In the circumstance, the matter requires
reconsideration in the hands of assessing authority.
Hence, the following:
ORDER
i) Order dated 05.06.2023 passed by the
KAT in STA No.206/2017 and order
dated 15.06.2016 passed by the
original authority in TIN No.
29080631050 are set aside.
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ii) Matter is remitted to the file of the
Assessment Officer for fresh
assessment in accordance with law.
iii) Without notice, the assessee shall
appear before the Assessing Officer
on 16.01.2024.
No costs.
Sd/-
JUDGE
Sd/-
JUDGE
PA
CT:HS
