TMI Blog2014 (9) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... es to be set aside and accordingly, it is set aside. It is held that assessee is entitled to the benefit of exemption from payment of turnover tax for the assessment years 2000-01 and 2001-02 in terms of the law which was prevailing then and is entitled to exemption from payment of resale tax for the assessment year 2002-03 as held to be entitled by the Tribunal. Assessing Authority shall grant exemption to the assessee for the assessment years 2000-01 and 2001-02 from payment of turnover tax in terms of Clause-(xiv) to the proviso to Section 6-B. For the assessment year 2002-03, the assessee is entitled to the benefit of exemption from payment of resale tax in terms of Clause-(x) of proviso to Section 6-B. After giving the aforesaid ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee preferred the second appeals to the Karnataka Appellate Tribunal. The Tribunal after considering the rival contentions held that levy of resale tax was introduced with effect from 1.4.2002 as a prelude to the introduction of Value Added Tax system, in order to prepare the dealers for a smooth transition to Value Added Tax. Then, relying on the judgment of this Court in the case of M/s. MFAR Constructions Ltd. reported in 70 KLJ PAGE 370 held that, in that judgment the High Court was not dealing with the issue pertaining to turnover tax as it existed prior to 1.4.2002. Therefore, it extended the benefit of Section 6-B proviso Clause (x) with effect from 1.4.2002 and for the earlier two years, the benefit was denied. The review pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is, i) Whether the assessee was entitled to exemption from payment of turnover tax for the assessment years 2000-01 and 2001-02? ii) Whether the Tribunal was justified in passing the order of remand in respect of STA 853/2008? 5. Section 6-B as substituted by Act No.5 of 2002 with effect from 1.4.2002 reads as under. Section 6-B Levy of Resale tax (1) Every registered dealer and every dealer who is liable to get himself registered under sub-sections (1) and (2) of Section 10 whose total turnover in a year is not less than the turnovers specified in the said sub-sections, shall be liable to pay tax at the rate of one and half per cent of such portion of the total turnover which is not liable to tax under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the turnover which had not suffered tax under the Act. More importantly, that tax was made collectable from the customers. The reasoning of the Commissioner ran counter to the express provisions contained in section 6B of the Act and to the assurance given by the Finance Minister at the time of initiating the amendment on the floor of the State Legislature and could not be sustained. 7. The law prior to 1.4.2002 reads as under: Section 6-B Levy of Turnover tax (1) Every registered dealer and every dealer who is liable to get himself registered under sub-sections (1) and (2) of Section 10 whose total turnover in a year is not less than the turnovers specified in the said sub-sections whether or not the whole or any portion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal requires to be set aside and accordingly, it is set aside. It is held that assessee is entitled to the benefit of exemption from payment of turnover tax for the assessment years 2000-01 and 2001-02 in terms of the law which was prevailing then and is entitled to exemption from payment of resale tax for the assessment year 2002-03 as held to be entitled by the Tribunal. However, the Tribunal has observed that from the material on record it is not possible to make out what is the tax which is leviable and what is the exemption to which the assessee is entitled to and therefore, the matter has been remitted back to the Assessing Authority. That approach cannot be found fault with. We make it clear that the Assessing Authority shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
