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2017 (12) TMI 1015 - HC - VAT and Sales TaxBenefit of ‘Composition Scheme’ - Section 15 of the KVAT Act, 2003 - denial on the ground that they purchased certain goods from outside the State or in the course of inter-State Trade or Commerce including the capital goods like Plant and Machinery and in view of the Circulars issued by the Head of the Department, namely Commissioner of Commercial Taxes, Circular No.14/2013-14 on 05/10/2013 and Circular No.20/2013-14 on 18/12/2013, such benefit is sought to be denied to them. Held that: - this Court does not find anything offending or beyond the language of Section 15 of the KVAT Act, 2003 and Rule 135 of the KVAT Rules, 2005 in the said Circulars. The said Circulars merely explain the provisions of the said Section 15 of the KVAT Act, 2003 and Rule 135 of the KVAT Rules, 2005 in a contextual manner. The Assessing Authorities or even the Appellate Authorities while dealing with such issues are still free to take their independent view of the matter and one cannot say that they are bound by the terms of the Circulars issued by the Commissioner of Commercial Taxes which are nothing but administrative guidelines for their sub-ordinate Assessing Authorities and the learned Commissioner of Commercial Taxes has such powers under the KVAT Act, 2003. Validity of Section 15 of the KVAT Act, 2003 - Held that: - this Court cannot reconsider the issue de novo merely because some arguments are sought to be raised which as contended by the learned counsel for the petitioners, was not raised earlier. They are free to raise any such questions relating to validity of the said provisions before the Division Bench of this Court where the appeal against the said judgment of the learned Single judge namely Writ Appeal No.1654/2009 is pending in the same case. This Court does not find any reason to allow the assessees petitioners to by-pass the regular appellate remedies available to them under the KVAT Act, 2003 before the Appellate Forums and if such petitions are directed only against the Show Cause Notices issued by the Assessing Authorities, the assessees may first show cause before the concerned Authorities themselves. The writ petitions are considered to be premature and do not deserve to be entertained by this Court at this stage - petition dismissed.
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