Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Photo Emporium, M/s. G.K. Vale & Co., M/s Classic Lab, M/s. Danthi Colour Lab, M/s. Adlabs, M/s. R.K. Color Centre, M/s. Rachana Enterprises Versus Deputy Commr. of Comml. Taxes (Audit 12) , VAT Division, Commr. Of Comml. Taxes, State of Karnataka

2016 (6) TMI 503 - KARNATAKA HIGH COURT

Exigibility of output tax - works contract or pure service contract - running Photo Studios - business of processing and supplying of photographs, photo prints and photo negatives - consideration of giving of input tax credit admissible against the output tax liability - Held that:- the question of liability to pay tax under the provisions of VAT Act, 2003 has been determined by the Hon'ble Supreme Court finally in the cases of the assessees only now on 30th January, 2015. If the claim for input .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he basis of such claims made before the Assessing Authority or not. Therefore, while the levy of output tax is sustainable on the said activity now held to be a 'works contract' by the Hon'ble Supreme Court, the computation of net tax liability under the provisions of the VAT Act, 2003 has to be done afresh by the Assessing Authority, in accordance with the provisions of the VAT Act, 2003.

The different claims of input tax credit, deduction of labour charges, franchise charge, exempti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

th law by passing a fresh speaking assessment orders in pursuance of the present remand of case made by this Court. - Petitions allowed by way of remend - Writ Petitions 21604-639 / 2011 - Dated:- 31-5-2016 - Vineet Kothari, J. For the Petitioner Sri T N Keshavamurthy, Adv. For the Respondent : Sri T K Vedamurthy, AGA ORDER All these petitions are being disposed of by this common order. 2 The petitioners before this Court are assessees doing business of processing and supplying of photographs, p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd there was no execution of any Works Contract as such and therefore, question of levy of tax under the earlier provisions of the Karnataka Sales Tax Act or the substituted new law viz., Karnataka Value Added Tax Act, 2003 did not arise in their case. 4 The Division Bench of this Court in the case of Pro Lab, Mangalore Vs State of Karnataka 2005 (59) Kar.LJ 410 (DB) held in favour of the assessees and struck down the relevant Entry 25 for imposition of tax on such processing and supplying of ph .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty amounted to execution of works contract or not, was decided in favour of Revenue by the Hon'ble Supreme Court and the relevant portion of the judgment is quoted below for ready reference. 28 We would like to point out at this stage that the High Court in the impugned judgment has not dealt with the matter in its correct perspective. The reason given by the High Court in invalidating Entry 25 is that this provision was already held unconstitutional by the said High Court in Keshoram's .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Rainbow Colour Lab's case is not longer a good law. 29 The impugned judgment of the High Court is accordingly set aside, the present appeal is allowed and as a result thereof, the writ petitions filed by the respondents in the High Court are dismissed holding that Entry 25 of Sixth Schedule of the Act is constitutionally valid. There shall, however, be no order as to costs. The Assessing Authority, accordingly, by the orders impugned in the present batch of petitions, passed assessment orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

5 having been upheld by the Hon'ble Supreme Court in the aforesaid judgment reversing the Division Bench judgment of this Court, they cannot possibly contend against the levy of output tax itself in the impugned orders passed by the Assessing Authority before this Court. However, the limited grievance which they submitted before this Court is that while imposing the output tax under the provisions of the VAT Act, 2003, the Assessing Authority was also required to consider the case of the pet .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ore the Assessing Authority, while the impugned orders were passed because they were contending all through that they are not at all liable to pay any tax under the provisions of the VAT Act, 2003. They, therefore, submitted that the Assessing Authority should be directed to at least, even now, consider their claim of input tax credit and other deductions, in accordance with law. 7 Learned counsel representing the Revenue however, submitted that while the question of exigibility to tax under the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the aforesaid case in State of Karnataka Vs Pro Lab & Ors on 19.11.2007 which is quoted below for ready reference. Hearing of the Civil Appeal is expedited. Meanwhile, the authorities may make the assessment but no coercive steps will be taken to recover the tax from the respondents (herein). IA 1 of 2007 is allowed. Let the applicant M/s R K Colour Lab, in the application be impleaded as respondent to the Appeal. He urged that if at all the assessees wanted to lay any such claim, they oug .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sel at some length and perused the judgment of the Hon'ble Supreme Court cited at the Bar and the impugned assessment orders passed by the Assessing Authority. 9 Since the question of exigibility of tax on the activity of the present petitioner assessees is now beyond the pale of doubt and as rightly submitted by the learned counsel for petitioner assessees that they cannot possibly now contend against the levy of output tax itself in the present cases, the process of assessment for determin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

proceedings which took place while this litigation was pending before the Hon'ble Supreme Court, the assessees cannot be non-suited to make such claim now, if otherwise it is admissible in accordance with the provisions of law. The impugned orders passed by the Assessing Authority do not reflect any such consideration by the Assessing Authority either on the basis of such claims made before the Assessing Authority or not. 10 Therefore, while the levy of output tax is sustainable on the said .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version