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M/s. Jones Lang Lasalle Property Consultant India (P) Ltd., Versus The State of Karnataka Through The Commissioner of Commercial Taxes

2016 (5) TMI 826 - KARNATAKA HIGH COURT

Binding effect of circular dated 7.7.2008 vide No.VAT/CR-31/2008-09 and interpretation thereof - Return filed beyond the period of six months showing the additional tax liability - Levying of penalty and interest - Held that:- circular transpires that whenever the word is ‘ any additional tax liability’ it would mean ‘additional net tax liability’ because the moment there is use of the word ‘additional’, it would mean that either the tax is already paid, but shortly paid or even after the credit .....

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nt of tax by way of additional tax liability. - Therefore, if the credit or adjustment is to be given to the amount of tax already paid, there is no reason why the credit of input tax should not be adjusted against the tax liability and thereafter to arrive at the additional tax liability. In our view, the interpretation put forward on behalf of the Revenue to the circular dated 7.7.2008 cannot be accepted. - Interpretation of view taken by this Court in the decision which have been re .....

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tries Private Limited, Bangalore [2015 (10) TMI 47 - KARNATAKA HIGH COURT]. - If the matter is examined in the light of the aforesaid two aspects and the reasons recorded by the Revisional Authority are considered, it is found that the order cannot be sustained in the eye of law. Therefore, it would be appropriate to refer the matter to the Revisional Authority for reconsideration thereof in the light of the observations made by this Court. - Appeal disposed of by way of remand - STA Nos. 2/ .....

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he matters are taken up for final disposal. 2. As in all appeals, common questions arise for consideration, they are being considered simultaneously. We may record that since the respective assessment period differ, separate matters are numbered. Otherwise, the issues involved are common and can be considered by common decision. 3. The short facts of the case appears to be that the appellant herein filed return under the Karnataka Value Added Tax Act, 2003 [hereinafter re .....

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nce of notice under Section 64[1] of the KVAT Act. The appellant herein filed reply by way of objections to the notices issued by the Revisional Authority on 2.12.2015. The Revisional Authority passed the order under Section 64[1] of the Act, revising the Order dated 23.07.20 13 passed by the Assessing Authority - Assessing Officer. On 21.01.2016, the Prescribed Authority passed the consequential Order under Section 39[2] in addition to levying of penalty and interest. Under the circ .....

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the decision which have been referred to as that of the learned Single Judge and of the Division Bench in the Order. 6. On the first aspect, one may record that the Circular dated 7.7.2008 vide No.VAT/CR-31/2008-09 i t has been provided as under: Any revised return filed by a dealer beyond six months from the end of the relevant tax period is liable to be rejected. However, if such revised return indicates any additional tax liability, then in such a case, the return file .....

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ers to the additional tax liability of tax and it does not ref er to any credit of input tax. Learned Additional Government Advocate appearing for the Revenue also supported the said say of the Revisional Authority in the impugned order. 9. On the plain and simple reading of the circular, it transpires that whenever the word is any additional tax liability it would mean additional net tax liability because the moment there is use of the w ord additional , it would mean that either th .....

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edit or set off to be made of the tax already paid and the consequential amount of tax by way of additional tax liability. If the credit or adjustment is to be given to the amount of tax already paid, there is no reason why the credit of input tax should not be adjusted against the tax liability and thereafter to arrive at the additional tax liability. In our view, the interpretation put forward on behalf of the Revenue to the circular dated 7.7.2008 cannot be accepted. 1 .....

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period of six months. 11. We may first refer to the decision of the learned Single Judge of this Court in the case of FEDERAL MOGUL GOETZE [INDIA] LIMITED Vs. ADDITIONAL COMMISSIONER OF COMMERCIAL TAX [AUDIT] 52, BANGALORE AND OTHERS reported in [(2011) 42 VST 439 (KARN)]. It was observed by the learned Single Judge that the Commissioner s circular is absolutely sustainable. Further, the learned Single Judge did observe that filing of the belated revise d returns and the .....

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ed 22.04.2015, the Division Bench of this Court did not interfere with the view taken by the learned Single Judge. 13. In another decision of the Division Bench of this Court in the case of STATE OF KARNATAKA Vs. CENTUM INDUSTRIES PRIVATE LIMITED, BANGALORE reported in [(2014) (80) KLJ 65 [HC] [DB], it was a case where no claim of input tax credit was ever made. In the appeal before the Tribunal, the input tax credit was granted. When the matter came up for further revision before th .....

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t tax was paid. 14. This Court further found that the Tribunal did not consider the said aspect and ultimately set aside the Order of the Tribunal. The distinguishing aspect which deserves to be taken note of is that it was n ot matter of input credit to be reflected in the return of the tax period during which input tax was paid. Since the amount relating to input tax was to be decided in the respective period, the Court made observation there to. As such, in the said de .....

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