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M/s. MAYA APPLIANCES PVT. LTD. Versus THE STATE OF KARNATAKA And THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)

2015 (4) TMI 1130 - KARNATAKA HIGH COURT

Constitutional validity of Rule - Proviso to rule 3(2)(c) of the KVAT Rules - whether is a provision which is discriminatory and also ultra vires of section 30(1) of the KVAT Act? - Deduction of quantity discount (quarterly scheme discount) - Assessing Officer has held that quantity discount (quarterly scheme discount) is not a allowable discount as the sale is not relatable to sale transactions in respect of which the invoices were raised and thereby added the amount of quarterly discount to ta .....

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ons stands dismissed. - WRIT PETITION NO.4363/2015(T-RES) - Dated:- 15-4-2015 - MR. ARAVIND KUMAR, J Petitioner By Sri.B.Raveendran, Advocate Along With Sri.Manohar N., Advocate ORDER Heard Sri.B.Raveendran, learned counsel appearing for petitioner and Sri.Vedamurthy, learned HCGP appearing for respondent-State. 2. Petitioner is a registered dealer under Karnataka Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 (For short CST Act ) and it is claimed that it is engaged in the manufactur .....

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rterly scheme discount) is not a allowable discount as the sale is not relatable to sale transactions in respect of which the invoices were raised and thereby added the amount of quarterly discount to taxable turnover and same is erroneous. Being aggrieved by this order dated 29.05.2010 assessee filed an appeal before first appellant authority who by order dated 12.10.2010 allowed the claim and extended the discount sought for by the petitioner. The Additional Commissioner of Commercial Taxes, Z .....

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ve filed Special Leave Petition in SLP No.12189-199/2014 which SLP has since been converted into SLP (Civil) vide Annexure-E and same is pending. 3. Issue involved in the present writ petitions relates to petitioner-assessee claiming deduction amounts indicating discount allowed or granted by petitioner to its customers under Rule 3(2)(c) under Karnataka Value Added Tax Act. As already observed herein above the Assessing Officer in the instant case has disallowed the same and matter is now under .....

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ved by the Co- ordinate Bench as under: The value of the sale transaction is as fixed at the time of sale and even in terms of the charging section. There is no scope for fixing the price later. If under the rule, the benefit is made available subject to the condition that the discounted price should have been so indicated in the invoice value of the goods, the condition is neither ultravires Section of the Act nor is discriminatory. I do not find any infirmity in the Rule nor the rule being ult .....

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liant effort to persuade this court to take a different view from the view taken by Co-ordinate Bench in W.P.9464/2008, I am not inclined to take a different view particularly when the Co-ordinate Bench has exhaustively dealt with the contentions raised therein and negatived. Grounds urged in this writ petition are identical and similar to the grounds urged in the said writ petition. That apart Division Bench while examining the second appeal of present assessee had the occasion to consider simi .....

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Division Bench by rejecting the same and holding as under: 12. In the present case, the assessee seeks deduction of the value representing quantity/scheme discount allowed in the tax invoices in view of their performance during 3-6 months and not in respect of the goods sold by the said tax invoices, mentioning gross value. It is true that the invoices to which the assessee made reference, state the gross value of the goods sold plus tax and the quantity/scheme discount and then declared the sam .....

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le 3 of the Rules. It is not in dispute that the quarterly discount in the form of quantity discount/scheme discount was allowed in the tax invoices on the basis of performance of the previous quarter and not in respect of the sales reflected in the said invoices. 13. Learned counsel for the assessee fairly submits that the discount shown in the invoice was not for the sale of goods mentioned in the said invoice but it was for the performance of the assessee during 3- 6 months prior to the date .....

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ct of the sales relating to such discount shown therein only will be allowed to be deducted under Rule 3(2)(c) of the KVAT Rules. Admittedly, the discount shown in the relevant invoices was not relating to the sales reflected in the said invoices, but for the sales effected earlier . Thus, both on merits and on law Co-ordinate Bench as well as Division Bench has held against petitioner and I do not find any other good ground involved in this writ petition for being examined. 6. Infact, on the gr .....

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1. Subsequently Hon ble Apex Court in the case of United Bank of India Vs Satyawati Tondon and ors reported in (2010)8 SCC 110 has observed that rules of self-imposed restraint evolved is bound to be kept in mind while exercising power under Article 226 of Constitution of India. It has been held by Hon ble Apex Court as under: 43. Unfortunately, the High Court overlooked the settled law that the High Court will ordinarily not entertain a petition under Article 226 of the Constitution if an effe .....

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emselves inasmuch as they not only contain comprehensive procedure for recovery of the dues but also envisage constitution of quasi judicial bodies for redressal of the grievance of any aggrieved person. Therefore, in all such cases, High Court must insist that before availing remedy under Article 226 of the Constitution, a person must exhaust the remedies available under the relevant statute . It was also held in the said Judgment that rule of exhaustion of alternate remedy is a rule of discret .....

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ion contains a detailed mechanism for redressal of his grievance . It came to be noticed by Hon ble Apex Court in Sathyawati Tondon s case that if in a given case petitioner is able to show that its case falls within any of the exceptions carved out as noticed hereinabove namely; (1) where issue of jurisdiction is involved (2) violation of principles of natural justice (3) constitutional validity or vires is under challenge, exercise of jurisdiction by High Court cannot be disturbed. It came to .....

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