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2008 (1) TMI 604 - SC - VAT and Sales TaxWhether the Karnataka Appellate Tribunal was right in concluding that the amendment to section 17(7) of the KST Act effective from April 1, 2002 would apply to agreements entered into prior to April 1, 2002? Whether the Karnataka Appellate Tribunal was right in holding that even transfers to stock would be hit by the amendment to section 17(7) of the Karnataka Sales Tax Act effective April 1, 2002? Held that:- Appeal dismissed. In view of the restriction imposed under the amended provision, the assessing authority could not have permitted the appellant- company to elect to pay the tax under section 17(6) of the Act, since admittedly the appellant received the goods by way of stock transfers from outside the State for the purpose of using such goods in the execution of works contract. Therefore, the first question of law raised by the appellant has been rightly answered against the assessee. The language used in sub-section (7) of section 17 is very clear. The expression "receives" would encompass receipt in any manner. Receipt by branch transfer is covered by the said expression. The High Court was, therefore, justified in dismissing the revision petition. No scope for taking a different view in view of the clear language of sub-section (7) of section 17 as amended with effect from April 1, 2002.
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