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TMI Blog2011 (1) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... tained by the assessee for the month of March 2006 discloses that, he imported the timber logs from M/s. World Best Trading Company, Dubai through Bill Nos. 3946 and 3946A dated March 17, 2006 for total value in USD 1,35,521.41 and declared the value of the goods in question at Rs. 63,65,441 by the Department by filing VAT form 100 and purchase statements. On verification of the bank statement, it was found out that, the assessee had paid amount of Rs. 63,65,441 to the seller and Rs. 53,656 as commitment charges on the above imports. The difference of amounts works out to Rs. 5,12,493. The assessee contended that the difference in the price is on account of fluctuation in the US dollar. However, he is liable to pay tax only on the initial p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional Commissioner of Commercial Taxes exercised his suo motu power under section 64(1) of the Karnataka Value Added Tax Act, 2003. After notice to the assessee, reviewed the order. He held, the dollar and rupee fluctuation is on account of foreign exchange rate determination by the Reserve Bank of India. Any increase on account of fluctuation would have to be borne by the importer. It would have to be paid by the importer. In the instant case, it cannot be said that the demand made by the respondent in Indian currency towards imports cannot be considered as part of purchase price due to increased payment and therefore, he set aside the order passed by the appellate authority and restored the order passed by the assessing officer. Aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not clear what is the amount paid by the bank and what is the exchange rate on the date of such payment. In the absence of that crucial material it is not possible to come to any conclusion in that regard. We see full force in the submission made by the learned Government Advocate. Therefore, it would be appropriate to set aside all these orders and remand the matter back to the assessing officer so that the appellants would be free to place all relevant materials and then the assessing officer shall pass appropriate orders after carefully going through the said material. That would meet the ends of justice. Hence, we pass the following: ORDER:- (i)The appeal is allowed. (ii) The order passed by the three authorities are thereby set as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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