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2022 (7) TMI 422 - KARNATAKA HIGH COURTEligibility for payment of tax under Composition Scheme - denial of benefit of composition scheme on the ground that respondent had made interstate purchases - business of sale of bakery items - purchase of bakery machinery, its parts and aluminum trays from outside the State - HELD THAT:- Respondent is not engaged in the business of sale of machinery. In the case of Shri. Anantha Padmanabha Bhat [2016 (7) TMI 546 - KARNATAKA HIGH COURT], rightly relied upon by the KAT, this Court has held that the vitrified tiles used in the restaurant owned by the assessee therein, were not sold by him in the regular course of business but they were used for the flooring of the restaurant where it was held that When so fixed in the floor, the Vitrified Tiles of-course became the part of the immovable property, and it is beyond the common sense and basic commercial prudence to even comprehend that the Vitrified Tiles fixed on the floor of the restaurant could be treated by an assessing authority as the 'goods in stock' dealt with by the assessee or sold in the course of regular course of business. In the instant case, admittedly, respondent is engaged in sale of bakery items. The goods purchased by the respondent are for preparing the bakery items. Hence, they cannot be considered as 'goods held in stock'. The questions framed by the Revenue are answered in favour of the assessee - revision petition dismissed.
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