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2018 (1) TMI 1442 - KARNATAKA HIGH COURTRate of tax - works contract - grievance of the petitioners is that even though nature of works contract undertaken by the petitioners’ firm with the local bodies and other departments of the State of Karnataka involved two or more specified categories mentioned at Sl.Nos.1 to 21 and 22 of the Sixth Schedule of KVAT Act and leviable for tax at the rate of 5.5%, respondent No.3 has levied tax at the rate of 14.5% by classifying their business as non-specified category mentioned at Sl.No.23 of the Sixth Schedule of KVAT Act - Held that:- In the facts and circumstances of the case if the Assessment Order at Annexure-F is set aside and if the Assessing Authority is directed to reconsider the matter, no serious prejudice will be caused to the respondents, as the petitioners have already paid the admitted tax at the rate of 5.5% and the difference of tax as demanded under Annexure-F may be around ₹ 10,00,000/- that can be safeguarded if the petitioners are asked to furnish bank guarantee to a tune of ₹ 10,00,000/- to respondent No.3-Assessing Authority. The Assessment Order passed by respondent No.3 at Annexure-F is set aside - Matter stands remitted to respondent No.3 Assessing Authority with a direction to reconsider the matter afresh after providing opportunity to the petitioners to produce documents on which they want to rely upon and after providing personal hearing - petition allowed.
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