Case Note & Summary
The petitioner, M/s. Shanthakoti Enterprises, a dealer engaged in extraction and sale of rough granite blocks from quarries in Chamarajanagar, filed revision petitions under Section 65(1) of the Karnataka Value Added Act, 2003, against the order of the Karnataka Appellate Tribunal, Bengaluru, dated 28.7.2014 in STA Nos. 1160-1171/2011. The Tribunal had dismissed the assessee's appeals filed under Section 9(2) of the Central Sales Tax Act, 1956, confirming the levy of tax on inter-State sales. The assessee contended that the transactions were stock transfers and not sales, but failed to provide sufficient evidence. The High Court, after hearing the counsel for the petitioner, found that the Tribunal had recorded concurrent findings of fact and that no substantial question of law arose. The revision petitions were dismissed, upholding the Tribunal's order.
Headnote
A) Value Added Tax - Revision - Substantial Question of Law - Section 65(1) Karnataka Value Added Act, 2003 - The High Court dismissed revision petitions filed by the assessee-dealer against the order of the Karnataka Appellate Tribunal, holding that no substantial question of law arose for consideration. The Tribunal's concurrent findings of fact regarding the nature of transactions as inter-State sales rather than stock transfers were not interfered with. (Paras 1-3)
B) Central Sales Tax - Inter-State Sale - Burden of Proof - Section 9(2) Central Sales Tax Act, 1956 - The assessee, a dealer in granite blocks, failed to discharge the burden of proving that the movement of goods was by way of stock transfer and not sale. The Tribunal's conclusion that the transactions were inter-State sales was upheld. (Paras 2-3)
Issue of Consideration
Whether the Karnataka Appellate Tribunal erred in dismissing the assessee's appeals against the levy of tax on inter-State sales of granite blocks, and whether any substantial question of law arises for consideration under Section 65(1) of the Karnataka Value Added Act, 2003.
Final Decision
The High Court dismissed the revision petitions, holding that no substantial question of law arose for consideration. The order of the Karnataka Appellate Tribunal dated 28.7.2014 in STA Nos. 1160-1171/2011 was upheld.
Law Points
- Revision under Section 65(1) of KVAT Act
- 2003
- limited to substantial questions of law
- concurrent findings of fact not interfered with
- burden of proof on assessee for inter-State stock transfer
- Section 9(2) of CST Act
- 1956
Case Details
2018 LawText (KAR) (07) 6
STRP No.192 OF 2015 & STRP Nos.331-341 OF 2017
Dr. Vineet Kothari, Mrs. S. Sujatha
M/s. Shanthakoti Enterprises
State of Karnataka, Commissioner of Commercial Taxes, Joint Commissioner of Commercial Taxes (Appeals), Commercial Tax Officer
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Nature of Litigation
Revision petitions under Section 65(1) of the Karnataka Value Added Act, 2003 against the order of the Karnataka Appellate Tribunal dismissing appeals under Section 9(2) of the Central Sales Tax Act, 1956.
Remedy Sought
The assessee sought to set aside the Tribunal's order confirming the levy of tax on inter-State sales of granite blocks.
Filing Reason
The assessee was aggrieved by the Tribunal's order dated 28.7.2014 in STA Nos. 1160-1171/2011, which dismissed its appeals against the tax assessment.
Previous Decisions
The Karnataka Appellate Tribunal, Bengaluru, by order dated 28.7.2014 in STA Nos. 1160-1171/2011, dismissed the assessee's appeals, confirming the levy of tax on inter-State sales.
Issues
Whether the Tribunal erred in holding that the transactions were inter-State sales and not stock transfers?
Whether any substantial question of law arises for consideration under Section 65(1) of the KVAT Act, 2003?
Submissions/Arguments
The assessee argued that the movement of granite blocks was by way of stock transfer and not sale, and therefore not liable to tax.
The Revenue contended that the assessee failed to prove the stock transfer and the Tribunal correctly held the transactions as inter-State sales.
Ratio Decidendi
Under Section 65(1) of the Karnataka Value Added Act, 2003, revision lies only on substantial questions of law. Concurrent findings of fact by the Tribunal, based on evidence, cannot be interfered with unless perverse. The assessee failed to discharge the burden of proving that the movement of goods was by way of stock transfer.
Judgment Excerpts
The assessee-M/s Shanthakoti Enterprises, Chamarajanagar, a dealer of granite, engaged in the business of extraction of rough granite blocks from quarries and effecting the sales of the same in the course of inter-State trade and commerce, has filed the present Revision Petitions in this Court aggrieved by the order passed by the Karnataka Appellate Tribunal, Bengaluru, dated 28.7.2014 in STA Nos. 1160-1171/2011 (M/s. Shanthakoti Enterprises vs State of Karnataka), whereby the learned Tribunal dismissed the appeals filed under Section 9(2) of Central Sales Tax Act, 1956.
Procedural History
The assessee filed appeals before the Karnataka Appellate Tribunal under Section 9(2) of the Central Sales Tax Act, 1956, which were dismissed on 28.7.2014. Aggrieved, the assessee filed revision petitions under Section 65(1) of the Karnataka Value Added Act, 2003 before the High Court of Karnataka, which were dismissed on 6.7.2018.
Acts & Sections
- Karnataka Value Added Act, 2003: 65(1)
- Central Sales Tax Act, 1956: 9(2)
