9911796707
TMI Blog2013 (1) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfy the definition of the term 'importer' under Section 2(xxii) of the KVAT Act, does require registration under the CST Act to be an 'importer' as defined thereunder. The third question is, whether penalty will be justified for not taking CST registration, when the scope of registration is specifically dealt with under Section 7 of the CST Act and if the assessee does come within the purview of such requirement to have registration. 2. The minimum extent of factual narration for the purpose of adjudication of this case is that, the petitioner is a registered dealer under the KVAT Act and is having only 'Inter-State purchases' and not 'Inter-State sales' (conceded in paragraph 4 of the counter affidavit as well). In respect of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the reason that the petitioner did not have any valid registration under the CST Act. 5. In the meanwhile, the petitioner was also served with Ext.P5 notice proposing to impose penalty for admittedly having effected Inter-State purchase, without CST registration. The factual and legal position was sought to be explained by the petitioner, which, however, was not accepted and the respondent imposed penalty as per Ext.P8 order holding that, the petitioner was liable to take out registration under the CST Act, which in turn, forms the subject matter of challenge in this writ petition, along with other grounds as mentioned herein before. 6. Learned Government Pleader appearing on behalf of the respondent submits with reference to the count ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n "importer" as defined under the Act. Section 2(xxii) defines the term "importer", which reads as follows: S.2(xxii) "Importer means any person who obtains or brings any taxable goods from any place outside the state or country whether as a result of purchase or otherwise for the purpose of business." Section 6(1) of the Act reads as follows: Sec.6 : Levy of tax on sale or purchase of goods :-(1) Every dealer whose total turnover for a year is not less than ten lakhs rupees and every importer or casual trader or agent of a non-resident dealer or dealer in jewellery of gold, silver and platinum group metals or silver articles or contractor or any State Government, Central Government or Government of any Union Territory or any department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax under this Act, apply for registration under this Act, to the authority referred to in sub-section (1), and every such application shall contain such particulars as may be prescribed. Explanation - For the purposes of this sub- section, a dealer shall be deemed to be liable to pay tax under the sales tax law of the appropriate State notwithstanding that under such law a sale or purchase made by him is exempt from tax or a refund or rebate of tax is admissible in respect thereof. 10. Sub Section 1 of Section 7 does not come to the case in hand, as the petitioner admittedly is not dealer who is liable to pay tax under the CST Act, he having only Inter-State purchase and not Inter-State sales. What is stipulated in Sub Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State sales. 11. In the above circumstances, this Court finds that the impugned orders passed by the first respondent vide Ext.P4 and P8 denying the benefit of Input Tax Credit to the petitioner and also imposing penalty do not have any factual or legal basis. The said orders are set aside accordingly. It is declared that the petitioner is entitled to have the benefit of "Input Tax Credit", in so far as he happens to be an 'importer' as defined under Section 2(xxii) of the KVAT Act and there is absolutely nothing wrong for having collected and remitted the tax, without having any registration under the CST Act. The respondent is directed to finalise the proceedings afresh, with regard to the claim put forth by the petitioner, in the light ..... X X X X Extracts X X X X X X X X Extracts X X X X
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