9911796707
TMI Blog2016 (7) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... cted under Section 15(1) of the Karnataka Value Added Tax Act, 2003. 2. The petitioner admittedly runs a restaurant serving vegetarian food in Bangalore and opted to pay tax at the composite concessional rate of 4% under Composition Scheme as enacted under Section 15(1) of the Act with effect from 1.4.2015. The impugned re- assessment notice Annexure-A dated 15.6.2015 and consequent order passed vide Annexure-E dated 17.10.2015 and Annexure-F dated 20.10.2015 were based on the ground that during the course of inspection, the investigating authorities had observed that the petitioner assessee effected the purchase of goods i.e. Vitrified Tiles worth Rs. 1,69,910/- and Rs. 23,375/- as per e-Sugum Nos.1544436804 and 1035063610 during the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , any goods purchased from outside the State and lying in stock disentitled the assessee from availing the benefit of the Composition Scheme enacted under Section 15(1) of the Act and since it is a concessional scheme and a concession given by the State to the assessee, the conditions for availing the same have to be strictly construed and complied with by the assessee and since the assessee in the present case apparently purchased the Vitrified Tiles from the State of Gujarat, he violated the conditions of availing the Composition Scheme and therefore the assessee was not entitled to pay the composite concessional rate of tax on the gross turnover of 4%, but on the other hand, he was liable to be re-assessed in the regular assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate." 7. Admittedly, the petitioner is running a restaurant only and is engaged in the business of serving vegetarian food and not engaged in the business of sale of Vitrified Tiles. In the restaurant, the Vitrified Tiles in question were not sold by him in the regular course of business, but were used only for the purpose of flooring of the restaurant premises. When so fixed in the floor, the Vitrified Tiles of-course became the part of the immovable property, and it is beyond the common sense and basic commercial prudence to even comprehend that the Vitrified Tiles fixed on the floor of the restaurant could be treated by an assessing authority as the "goods in stock" dealt with by the assessee or sold in the course of regular course of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the regular day-to-day business for which he is registered by the Department. These Rules do not intend to cover the goods purchased for construction or being material to be fixed in the building premises of the assessee like the Vitrified Tiles in the present case. In the present case, the Tiles purchased from the State of Gujarat on payment of Central Sales Tax and fixed in the floor of the Restaurant in question, cannot be said to be "goods in stock" while they can definitely be said to be "goods" as such. The exclusion of the "goods in stock" which are brought from outside the State on the date when the assessee opts for the Composition Scheme and the restriction put on him not to sell such goods after that date is obviously not applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
