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2016 (4) TMI 921 - HC - VAT and Sales TaxEntitlement for input tax rebate - Section 10(3) of the KVAT Act - Purchases effected from local registered dealers - Held that:- Since the petitioner was entitled for adjustment of excess tax paid in view of the said notice issued, the petitioner made adjustments of the excess taxes paid for the aforesaid tax periods against the output tax payable from the month of August 2014 in the monthly returns submitted in Form VAT 100 under the KVAT Act before the third respondent. Subsequently, the second respondent had observed that the allowance of input tax in the re-assessment orders as per the actual input tax claimed by the petitioner as per the returns filed in Form VAT 100 has resulted in loss of revenue and the re- assessment orders was opined to be erroneous insofar as the same as prejudicial to the interest of the public revenue in the light of the judgment of this Court in the case of State of Karnataka vs. M/s. Centum Industries (P) Limited [2015 (10) TMI 47 - KARNATAKA HIGH COURT]. The second respondent had issued notice under the provisions of Section 41(1) proposing to rectify the reassessment order rejecting the input tax credit allowed earlier to the petitioner. Re-opening of proceedings - Re-assessment order was prejudicial to the interest of revenue - Held that:- there is no authority or jurisdiction in the second respondent in seeking to reopen the proceedings on the basis of the said judgment. If at all, it is the revisional authority who may be vested with such power. It is to be noticed that it is indeed so, as the authority had the benefit of the judgment of this Court in Centum Industries and could not therefore on the basis of the said judgment, seek to re-open the proceedings on the footing that the re-assessment order was prejudicial to the interest of the revenue. If at all, it was for the revisional authority to have re-opened the said proceedings on any such opinion. - Decided in favour of petitioner
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