IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 16" DAY OF FEBRUARY, zfiio PRESENT THE HON'BLE M. JUSTICE K.L. MA#JvNATH_" AND THE HON'BLE Mas. JUSTICE afv. NAGARATHNA"* STRP No.i;i/2008*.l"7 BETWEEN: State of Karnataka, _p._Vp--. R/by the Sec:etary"tdvQoVt;,x . Finance Department; 3"" ",*<«-- Vidhana $ofidhe,j _:K3p 5 a pa Bangaloreflgls '*»pafA'»= g ' .. PETITIONER (By Go§£;§5d§§¢a:e Smt,éeetha Menon) AND: M/s ReliafiEepInfiuetries Ltd., _.No.7?/C} II FloQ:,a "D.K}Lane,'Chikpet, AV_EangalQre+53?a .. RESPONDENT
(Bfxa6voeates”$ti.G.Rabinathan & M.Thirumalesh)
n¢h;s STRP is filed under Sec.23(l) of KST Act
x’a§alnst§ the order dated 12.2.2008 passed in STA
H¢.410/2007 on the file of the Karnataka Appellate
R”T;lbfinal, Bangalore, allowing the appeal and
9,
directing the AA to issue revised demand notices
accordingly.
This Petition is coming on for finala hearing
this day, NAGARATHNA J. made the following§_Tu.
O R D E~Rm4
This revision petition has> been .filed: by Fthe
State challenging the order dated l2:2i2$Q8 passed in
STA 4310/2007 by Ka_’rnati’a.1$gavvi'”-Appellate Tribunal,
Bangalore.
2. The reievahtf £;cps_ off the case are that the
respondentfassessee–gisg engaged in the business of
trading in polyester yarn and other such materials
and is a dealer under the provisions of the Karnataka
_ Value Added Tax Act 2003 (hereinafter referred to as
TfTh§,Act”}vand Central Sales Tax Act,l956. For the
period’from_April,2006 to September,2006 respondent
filedfl monthly returns under the provisions of
_:”secI35(1l of the Act R/w Rulew38 of Karnataka Value
.Added Tax Rules,2005 (hereinafter referred to as ‘The
“Rnles’). Claiming deduction in the total turn over
A/’/’
allowed to its purchasers which has resulted in
reduction of taxable turn over relating to goods sold
during the said months. Respondefit!§hedr,issued
invoices for the sales effected during the eeie peeled
and had charged sales tax for goods at the rate e£_§%
under the Act separfitelygp * V
3. According to the respondentg*incentive scheme was
extended to its ‘purchasers_ tor encourage them to
purchase higher quantities ofVgoods and make payments
towards the gceds purchased for which respondent had
issued credit dates in every month and allowed certain
discount ‘to _itsc*buyers subsequent to tax invoices
already issued undernthe provisions of Sec.29 of the
” Act §ndL§flles madevthereunder. On account of the said
VgschemeVof incentives and the issuance of credit notes
and By way hf trade discounts which has resulted in
hreduced taxable turn over relating to the goods sold
{for particular months for which respondent had claimed
‘”reduction in the amount of tax from the total turnover
‘flcor the said months. fiyfi
(1
to encourage the purchasers credit notes are issued
which would mean that the amounts at which invoices
were issued would automatically be reducedg to the
extent of credit notes given to various pnfnhaners and
that the tribunal was justified vgrovtev:
said fact and granting benefit with regar37§5X#@dfiCéd
turn over by allowing nthe Happealgwtiled bpl the
respondent.
8. Having heard the learned counsel for the parties
and on perusal of the material on record, it is not in
di9PuVe “”” “that din “terms “of the incentive scheme
respondent has given to its various purchasers credit
notes withg the ;putpote of encouraging’ thenl to sell
” greater :quantities’ of its products and also with
.Hregard”to prompt repayment. The issuance of the credit
notest wodldi automatically” mean that the amounts as
dmentioned in the invoices would be reduced which would
»result in reduction in the over all turn over relating
ig ~t¢ the goods sold for the particular month. However,
dkwe find that the tribunal has not taken into
ix.
1-. law
assessing authority as well as the first appellate
authority.
9. From the material on record, it is not known as
to whether the details as stated in §ule;3l of the
Rules had been furnished by the assessee tei the
assessing authority at the time or rdeidinsxhenetit
under the said Rule. Under the oircuestanoesfl We deem
it proper to remand the .matter yfifi dthe dassessing
authority with a direotion to the respondentmassessee
to furnish all details of Rule–31 of the
re–consider the entire matter in the light of the said
provisions and pass fresh orders in accordance with
19. gFor the aforesaid reasons, this revision petition
dd is allowedif
aizaaeea