TMI Blog2016 (5) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... done afresh by the Assessing Authority, in accordance with the provisions of the VAT Act, 2003 - appeal allowed by way o remand. - Writ Petitions 192 – 227/2016 c/w 6491– 6538/2016 (T-Res) - - - Dated:- 31-5-2016 - DR. VINEET KOTHARI J. Petitioner (By Sri T.N. Keshavamurthy, Adv.) Respondents (By Sri T.K. Vedamurthy, AGA) ORDER 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, photo prints and photo negatives running their Photo Studio s within the State of Karnataka. They are registered under the provisions of the Karnataka Value Added Tax, 2003 (for short KVAT Act, 2003). 3. They contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 case against which the SLP was also dismissed and in view of that decision, it was not permissible for the Legislature to re- enact the said entry by applying a different legal principle. According to us, this was clearly an erroneous approach to deal with the issue and the judgment of the High Court is clearly unsustainable. The High Court did not even deal with various facets of the issue in their correct perspective, in the light of subseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Authority was also required to consider the case of the petitioner assessees for giving of the input tax credit admissible in the said Act against the output tax liability to determine the net VAT liability and also the deduction for labour charges from the composite value of works contract, which is exigible to output tax under the provisions of the VAT Act, 2003 was required to be given. They also submitted that such claims of input tax credit and the deductions for determining the net taxable turnover and tax liability could not be earlier raised before 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 V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication of the orders might have lapsed in some of the cases. He also contended that there cannot be said to be any mistake apparent on the face of the record or the impugned assessment orders which may require rectification in the aforesaid manner. He therefore submitted that the writ petitions deserve dismissal. 8. I have heard the learned counsel 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchases of materials, etc., require determination of questions of fact based on relevant evidence, returns and claims made or to be made by the petitioner assessees. 12. Therefore, the cases necessarily call for a remand of the proceedings to the Assessing Authority himself, allowing the petitioner assessees to make such claims based on relevant evidence in accordance with law and the respondent Assessing Authority is expected to decide such claim s of the petitioner assessees on merits in accordance with law by passing fresh speaking assessment orders in pursuance of the present remand of case made by this Court. 13. Accordingly, these writ petitions are allowed. The assesses are relegated back to the Assessing Authority. They w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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