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2022 (7) TMI 423 - 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 is in the business of sale of food and drinks. It has purchased Sealing Machines, PP Cups etc., from outside the State as equipments and consumables for its business. Assessee is not a dealer of said goods. In the case of Shri. Anantha Padmanabha Bhat [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, admittedly, respondent is in the business of sale of food and beverages. The goods purchased by the respondent are for running its business. Hence, they cannot be considered as 'goods held in stock' - the view taken by this Court in Anantha Padmanabha Bhat’s case is fully applicable for the present case. 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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