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TMI Blog2014 (7) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... Added Tax Act, 2003 and dealing in cigarettes, supari, gutkha, confectionery, etc., under the name and style of M/s. Mahadevi Stores. 2. The assessee has filed the monthly returns in form VAT-100, in the office LV0-390, Belgaum, in which the assessee has declared turnover and tax liability. The assessee has also filed annual returns in form VAT-115, declaring the turnovers and taxes. 0n verification of the books of accounts, the assessing authorities noticed that the assessee has made mainly local purchases of cigarettes, supari, gutkha, confectionery, tobacco, etc., from the local RDs. The assessee has claimed input-tax credit on the local purchases. The assessee has effected mainly local sales of cigarettes, supari, gutkha, confectionery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the assessing authority overruling the said objections held that the assessee has admitted that they have not collected the tax separately in tax invoices as required under section 9(1) of the KVAT Act, 2003 and rule 29(1) of the KVAT Rules, 2005. Therefore, they ought to have paid the taxes on the entire sale value of the tax invoice issued as required under the KVAT Act. Section 4 of the KVAT Act, 2003 is very much clear that the assessee is liable to pay tax on their entire taxable turnover. The collection of tax in the tax invoice is mandatory to the registered dealers as required under section 9(1) of the KVAT Act, 2003 and rule 29(1) of the KVAT Rules, 2005. Therefore, the assessing authority held that the assessee is liable to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power under section 64(1) of the KVAT Act, 2003 has invoked its jurisdiction and issued notice to the respondent to show cause why the tax should not be collected on the total turnover on the ground that the order of the appellate authority is erroneous and is detrimental to the interest of the Revenue. The assessee appeared before him, reiterated his contentions, which was urged earlier. However, the revisional authority held that unless the value added tax is separately charged for in the tax invoice after the sale value of the goods and accounted in the books of accounts in the aforesaid manner, the deduction towards the value added tax collected on the inclusive basis in the gross value of the goods sold is not admissible. Therefore, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stions of law. Accordingly we frame the only substantial question of law, that arises for our consideration as under: Whether the assessee is entitled to the benefit of deduction of tax from the total value of the bills, when in the bill the assessee has not shown the value of the cost price of the goods and the tax payable thereon separately? 8. Section 9 of the Act deals with collection of tax by registered dealers, 8 Governments and statutory authorities. It reads as under: "9. Collection of tax by registered dealer, Governments and statutory authorities.- "(1) Every registered dealer liable to pay tax under the Act shall collect such tax at the rate or rates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (j) signature of the selling dealer or his agent:" 10. A reading of both provisions makes it very clear that in the tax invoice, the registered dealer shall mention (a) description of the goods, (b) the quantity of goods, (c) value of the goods, (d) rate and amount of the tax charged in respect of the taxable goods and (e) the total value. In other words, before arriving at a total value, in the bill the description of the quantity and the value of the goods should be specifically mentioned. It is on the value of goods, the tax payable is to be mentioned. They should also mention the rate at which the tax is collected. Thereafter, he should arrive at a total figure by adding these two. If the tax invoice is issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto the facts carefully was more concerned about the judgments, which are relied upon, where no law is laid down and where they were deciding the case on facts. If misconstrued those judgments, while applying them to the facts of these cases, which has resulted in an error apparent on the face of records. The revisional authority was fully justified in initiating suo motu proceedings as the order passed by the appellate authority was erroneous and prejudicial to the interest of revenue and he was duty-bound to interfere with such an erroneous order, set aside the same and restore the order of assessment. 13. In that view of the matter, we do not see any justification to interfere with the order passed by the revision authority. No merits. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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