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2012 (10) TMI 971 - KARNATAKA HIGH COURTWhether the finding of the revisional authority is perverse and arbitrary as the registration certificate issued by the competent authority was in force during the relevant period? Held that:- In view of coming into force of the KVAT Act with effect from April 1, 2005, the appellants are registered under the KVAT Act and opted for composition tax registration certificate. The said certificate has not been cancelled by the competent authority. So long as the composition tax registration certificate stands in the name of the appellants, the revenue cannot levy tax under section 4(1)(b) of the Act. The order of the revisional authority setting aside both the orders passed by the assessing authority as well as the first appellate authority is contrary to law. Apart from that with effect from June 7, 2005, the authorities have amended section 15(1)(c) and brought the ice cream parlour and sweet meat stall under the purview of section 16(1)(c) of the KVAT Act. Hence, for the month of April and May, the revenue cannot levy tax at the rate of 12.5 per cent. Hence, the order passed by the revisional authority cannot be sustained. The substantial question of law framed in these appeals is held in favour of the appellants.
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