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2022 (7) TMI 416 - HC - VAT and Sales TaxEligibility to pay taxes under the scheme of composition - purchase of machinery in the course of interstate trade for use in business activity of the Respondent - Section 15(1) (c) of KVAT Act, 2003 - HELD THAT:- Undisputed facts of the case are, respondent owns a stone crushing unit. He has bought stone crushing machinery from outside the State by giving C-Form. His main business is not dealing in stone crushing equipments. In the case of SRI. ANANTHA PADMANABHA BHAT VERSUS COMMISSIONER OF COMMERCIAL TAXES IN KARNATAKA, BENGALURU AND COMMERCIAL TAX OFFICER (AUDIT) , BENGALURU [2016 (7) TMI 546 - KARNATAKA HIGH COURT], rightly relied upon by the KAT, this Court has held that the vitrified tiles used in the restaurant owned by the assessee therein were not sold by him in the regular course of business but they were used for the flooring of the restaurant where it was held that When so fixed in the floor, the Vitrified Tiles of-course became the part of the immovable property, and it is beyond the common sense and basic commercial prudence to even comprehend that the Vitrified Tiles fixed on the floor of the restaurant could be treated by an assessing authority as the 'goods in stock' dealt with by the assessee or sold in the course of regular course of business. The assessing authorities trained and well acquainted with the commercial terms, cannot be allowed to take such perverse views. In the instant case, it would be incongruous to construe the capital equipments purchased by the assessee for stone crushing as ‘goods in stock’. The question framed by the Revenue is answered in favour of the assessee - This revision petition fails and it is accordingly dismissed.
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