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2021 (7) TMI 392 - HC - VAT and Sales TaxLevy of purchase tax - transactions corresponding to the sale of colour monitors by M/s. BPL Ltd. to the petitioner were purchases by the petitioner within the State of Karnataka - Applicability of Section 6 of the K.S.T. Act, 1957 - HELD THAT:- The nature of transaction in question is required to be ascertained by the authorities under the Act in order to determine whether Section 6 of the Act could be invoked to levy purchase tax on the petitioner. The tribunal was also required to determined whether the transactions were transactions in the course of inter state sale. Section 6 cannot be invoked to levy purchase tax in case of goods sold or purchased in course of an inter-state trade or commerce. Thus, before invoking Section 6 of the Act, the authorities under the Act were required to ascertain the nature of transaction. It is found from the order of the tribunal that no finding has been recorded with regard to the nature of transaction and with reference to the material available on record and a general observation has been made that branch transfers are nothing but dispatches by the petitioner to outside the branches as a consequence of purchase. Before upholding the levy of tax, the nature of transaction was required to be looked into, which has not been done. Matter remitted to the tribunal for decision afresh - petition allowed by way of remand.
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