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2023 (7) TMI 385 - HC - VAT and Sales TaxTaxability - Maize Flakes, Malted Barley, Malt conversion and Malt extract are taxable under KTEG Act or not - imposition of interest and penalty for the period prior to the decision in United Breweries [2015 (9) TMI 1516 - KARNATAKA HIGH COURT] - HELD THAT:- Admittedly, the decision in United Breweries is rendered on September 14, 2015. Hence, Maize Flakes, Malted Barley, Malt conversion and Malt extract became taxable pursuant to the decision in United Breweries. Assessee was paying tax on hops pallets prior to the said decision. In Jayce Trading Corporation [2021 (3) TMI 956 - KARNATAKA HIGH COURT], the assessee therein had paid taxes for period between 03.03.2010 and 31.03.2011 prior to the date on which the Commissioner had clarified the issue on 07.07.2014. In the case on hand, the basis to impose tax is the decision in United Breweries which has been rendered on 15.09.2015. Therefore, imposition of tax prior to the decision in United Breweries is not sustainable. For the same reason, interest and penalty are also not sustainable. The aspect of ‘fit for consumption’ has been considered by this Court in United Breweries. Therefore, this contention is untenable and accordingly, rejected. Revision petition allowed.
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