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TMI Blog2013 (12) TMI 1462X X X X Extracts X X X X X X X X Extracts X X X X ..... stered under the Karnataka Value Added Tax Act, 2003 (for short 'the Act') and Central Sales Tax Act. The assessee is engaged in the business of manufacture, selling & trading of Electrical and Automation Products and execution of works contract for Transmission & Distribution and electrical Balance of Plant for power sector, electrification of rail system and Airport Terminals, etc. 3. The assessee applied by way of a tender, for supply, erection, testing and commissioning of power supply receiving/distribution system, for Bangalore Metro Rail Project, a Joint Venture Project between the Government of Karnataka and Union of India for implementing the Bangalore Metro Rail Project. The assessee was awarded the contract and it entered i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice came to be issued by the audit authority, in Form Vat No. 275 under Section 52(1) of the Act, calling upon the assessee to produce the books of account for the purposes of audit, relevant to the assessment year 2010-11. Thereafter, the audit authority visited the business premises on 16-1-2012 and recorded the statement for audit purposes. Thereafter, Enforcement Authority has made a recommendation to the Joint Commissioner of Commercial Taxes to take up the cases for audit and reassessment. On 30-4-2012, a third notice came to be issued to the assessee calling upon the assessee to produce the books of account. It is in this background, on 25-9-2012, the assessee filed an application in Form Vat No. 540 seeking clarification from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Revenue supporting the impugned order contended that not one but three notices have been issued calling upon the assessee to produce the documents and twice the premises has been visited by the authorities. In fact, the assessee has already paid Rs. 2 crores as tax, subject to the result of the reassessment proceedings. A recommendation is already made for initiation of reassessment proceedings. It is in this background, the authority was justified in not entertaining the application as the very question which is raised in this application is pending consideration before the authorities and therefore, he submits that no case for interference is made out. 6. Rule 165(8) of the Karnataka Value Added Tax Rules, 2005 on which relian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; The order of the authority shall be binding, only on the applicant who seeks clarification and only in respect of the goods or transaction in relation to which a clarification is sought and also only on all the subordinate officers. (5) The order of the authority under this Section shall be binding as aforesaid unless there is a change in law or facts on the basis of which the order was passed. (6) Where the authority finds, on a representation made to it by any officer or otherwise, that an order passed by it was obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such order to be void ab initio and thereupon all the provisions of this Act shall ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax, goods were imported. Then returns are filed claiming exemption. It is only after inspection of the premises, the authorities issued notices to the assessee calling upon him to produce the documents, a recommendation is made for initiation of reassessment proceedings, and a demand for Rs. 2 crores was made to the assessee which is already paid after protest, the assessee filed the application before the Advance Rulings Authority. If the authorities have accepted the returns as it is and if they had no grievance whatsoever, they would not have called upon the assessee to produce the books of account and would not have collected a sum of Rs. 2 crores as tax even under protest. So prima facie, the question of exemption is pending befor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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