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2021 (1) TMI 246 - HC - VAT and Sales TaxRefund of tax paid on raw material - Eligibility for the benefit of Government Order dated 04.04.1978 - case of Revenue is that respondent is not eligible for benefits on the ground that Government Order dated 30.06.1969 as mini steel plant of the respondent was not established prior to 01.01.1975 and also on the ground that respondent was also not eligible for revised package of incentive offered in Government Order dated 04.04.1975 since, revised package was applicable only to new industrial units whose investment in fixed assets did not exceed ₹ 10 Lakhs - HELD THAT:- The Finance Department of Government of Karnataka had issued an order dated 25.11.1969. Clause (6) of the aforesaid order provided that sales tax shall be paid in monthly or quarterly installments as the case may be by party establishing a new industry and at the end of the year, he will have to make an application to the Assessing Authority under Mysore Sales Tax Act, 1957 for refund of sales tax paid on raw materials with supporting documents. However, by a subsequent Government Order dated 04.04.1975, the cash refund sanctioned by earlier Government Order was discontinued. Thereafter, a Government Order dated 12.01.1977 was issued by the Government of Karnataka while making reference to Government Orders dated 30.06.1969, 04.04.1975 and 17.11.1975. In the instant case, as per Government Order dated 30.06.1969 eligibility to refund of tax paid on purchases of raw materials was subject to certificate issued by Department of Industries and Commerce. The Department of Industries and Commerce issued a new unit certificate to the respondent stating that the respondent had started production of mild steel Ingots with effect from 14.04.1977 and the unit of the respondent was entitled to avail of the incentive and concession as per Government Order dated 12.01.1977. There is no restriction in the Government Order dated 12.01.1977 that sale is applicable to industrial units with investments not exceeding ₹ 10 Lakhs and therefore, Government Order dated 12.01.1977 is applicable to the case of the respondent. It is also pertinent not mention here that in Law Department of Government of Karnataka had already expressed an opinion in favour of the respondent vide communication dated 08.07.1992 that respondent was entitled to benefit of refund of tax - Also, the tribunal in the light of Government Order dated 12.01.1977 as well as certificates issued by Department of Industries and Commerce, which has been held to be binding in the light of the decision of this court in the case of M/s Wipro Infotech Ltd. [1998 (3) TMI 670 - KARNATAKA HIGH COURT] has held that respondent is entitled to refund of tax. Thus, the order passed by the revisional authority has been set aside and the order dated 04.08.1999 passed by Deputy Commissioner of Commercial Taxes has been restored. The tribunal has neither failed to decide nor has decided erroneously any question of law - petition dismissed.
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