{"id":50065,"date":"2009-05-12T00:00:00","date_gmt":"2009-05-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/wipro-limited-infotech-group-vs-the-state-of-karnataka-on-12-may-2009"},"modified":"2018-11-24T19:29:47","modified_gmt":"2018-11-24T13:59:47","slug":"wipro-limited-infotech-group-vs-the-state-of-karnataka-on-12-may-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/wipro-limited-infotech-group-vs-the-state-of-karnataka-on-12-may-2009","title":{"rendered":"Wipro Limited Infotech Group vs The State Of Karnataka on 12 May, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Karnataka High Court<\/div>\n<div class=\"doc_title\">Wipro Limited Infotech Group vs The State Of Karnataka on 12 May, 2009<\/div>\n<div class=\"doc_author\">Author: Ram Mohan Swamy<\/div>\n<pre>iii THE mag 3&amp;3??? 9? mmawam, \nmrrE:\u00a7 ~\"\u00a7*\u00a7~\u00a7:i$ 'FE-EE 1223 my 35* 351$;    \"\nP\",i'?.'\u00a3\u00a7$E'2'*ri''\u00a7::..,_ \\     '\n$32 \u00a7\u00a7\u00a7fi-'$1.3 \u00a7'm.Ji':s*:*:cE   .,\nram I\u00bbmrs\u00a7'BLE mg. J\u00a3?S:T\u00a7:\u00ab:C:E--.E;--\u00bb1\u00a7\u00a7AR;\u00e9LYA.'\u00a5Avv \u00e9wmy\n\n$'\"1\"V1\u00a71?*v;'f;\u20ac-9;-3,4ii;1V.';Z9 G\ufb01'{\u00a53'::'\u00a7f\u00a7_;'j;;];\n3%\u00a7s&lt;&#039;:.C\u00a7:&quot;;~:,530.s:.\u00a7\u00e9s::&#039;s\u00a70\u00a7  $&#039;;&#039;iii?,?\u00e9e.i4;23e}9\u20ac\u00a7&#039;;m\n\nR\ufb01\ufb01v\ufb01ai\ufb01gg  Sf:  ~ &quot;\n\nWipra Li3:{1i\u00a7&quot;;\ufb01\u00a7&#039; \u00a7i:;&#039;\u00a3\u00a7.:}ta:\u00a7\u00a71= (VJ%;fK&quot;:\u00a7\u00a7A,:i.E7._ V\n\nE46, vigielaggi\u00e9g E11d&#039;}%;1&#039;s;f1*\u00a7;gz,3,a Area. _ \nMeiagaih, .:v\u00a7.;=+sr;rs:_} V &#039;\u00a774Z&#039;\u20ac_p\u00abzf$$&lt;%:1:\ufb01\u20aci\nBy ,?=.i&#039;.$;V&quot;R.7\u20acgi{3\u00ab&#039;i3.&amp;&quot;5L{ Fixiaxxitre 1&#039;*v&#039;!.,a;rf:ager\n\n313:3. C}Shz;1s\u00a7:1\u00a7(}hai&quot;*%i} .   ?ET\u00a7&#039;I&#039;I@?\u00a7ER\n\n{By Vasu\u00e9\u00e9v \u00e9o\ufb01lgany and Sriyzzfhs %2.%.PE~a:isi2,\n&#039;i?_;%&quot;,A.g\u00a7at:ti, E.Kir.a.;22\u00abaa\u00a7 &amp;\u00a7.a.\u00a7\u00a7aiama\u00a7\u00e93 A\u00e9vecatesg\n\n&quot;   \n\n\u00a7\u00b03tE.&#039;.\u00a7}Z&quot;\u20acS\u20ac&#039;Ei31:\u20acjfi\u00a7 by i\ufb01epuiy Cifsmmissiermz&#039;\nQ3? \u20acZi:3::;m$:&#039;C\u00a7a} &quot;F::zxes(Re&lt;:c3w::\u00a77~ E}\n\n I191}-?s07i&quot;:;_ 1~  RES?\u00a3&#039;}\ufb01EQE\u00a7?I&#039;\u00a7&#039;\n\n~0.e-$0\u00bb\n\n V.  &#039;\u00a7&#039;i3iS STRP is fisai umgsr ssczian 23(1) of ma KS? Ad,\nWIQ57 agyzirisgt &#039;Kim jzz\u00e9gment ari\ufb01 Gzdezr \ufb01af\ufb01\u00e9 1\u00a7;i:2e2i.Ti{\u00a78\n\ng\ufb01amed in S&#039;}&quot;}%,E&#039;~i&#039;0.2\u00e9\u00a7jQ\u00e9 cm E1336: \ufb01lf,&#039; 5f the: Ka;r1:9\u00a3a;\u00a7\u00a7;~z\n\n&#039; VV &#039;&quot;;%\u00a7pai\u00a7a&#039;z::: &#039;\u00a7&#039;3*iE311\u00a71al, Ba\ufb01gaiom, \u00e9iigmmsmg \ufb01zgi apgeaa\u00e9 323%\n\nMisc. civii 813\u00e9f{&quot;}9 is fxitaci to stay fh\u00e9: Qptzratieri am&#039;?\n\u20ac\u00a7\u00a7\u20acC&#039;i\u00a7&#039;EL\u00a7.\u20ac}31 of {ha wade? (ii. 19?. 12.29533 11::  1261;) f 36*\n\nE  \/re \\\u00b0\\.\n\n\n\n&#039;f&#039;hi:3 petitian and fviiac. Civii coming Qn\u00a7._iE)f&quot;\u00e9i.\u00a7:2f::L%s;re1\u20ac3::\n\nthis clay, RAM MGHAN REDI)Y, J. pas\ufb01eci ti\ufb01; f&lt;:1;\u00a3\u00a2m::ir:.g:*~--. _ \n\nThe }C)\u20actitiOI1\u20acI&#039; at  \nincorporated &quot;LII1Ci{&#039;3I&#039; {he   and 3\nrag\ufb01tered deai\u00e9r  ii  inter aim, in tha\nmantxfactmvsz and   harciware anzi\nsuftware,  la  &quot;c--:*&lt;\u00a7\u00e9er stipuiatizag &quot;a\ufb01\n\u00a7f1C111SiV\u20ac: &quot;\ufb02   in reiation :0 the\npr0a1TT&#039;1v.%1ctg\u00abA \u20ac&quot;i1,:ri1&#039;:g \u00a3;E&quot;&#039;1t:+ aSS\u20acS$II3.\u20acI1t jf\ufb01\ufb01i&#039;\n2OG1\u00bb&lt;\u00a72\u00ab,% xL?17;\u20acV3;\u00b0;(::a\u00a7\u00e9.AV.&#039;.1;*:t:*s\u00a5f:{j,%:&#039;\u00e9%s were wis\u00e9d using wf\u00a7}?&#039;H1iX\n\nA\u00a7x_\u00a7%\u00a7)i1r2i\u00a711g  &quot;S\u00a7\u00a7*SI:e1::r1&#039;* ziaveioped by Sy&quot;:11iX India\n\n &#039;~&#039;:Z\u00a7rg9 i1&#039;\u00e9::i{;{:i~-Limited, Iihmxgh iIlC(i3I&#039;}&#039;3QI&#039;S1.i\u20acCi a pariicx\ufb01ar\n\n .c\u00a3$\u00a3ie  the tax at the applicabie rate, aftar\n\nap\u00a7._f \"v_{Z'\u00a7i:e:Viiir\u00a7e':'cia1 V\n\n'1'axes{'i'rar1si1;ioI1\u00ab\u00a3), V\u00a7fs9:'6:j,-\"\"\u00a7:n\u00a7ig--;-  As\u00a7c3s\u00e9ir1gA \u00a7\u00a33ut}10:\"\u00a73;}-?\nissueci a penalty :\"1ot:i';\u00a7\u00e9%&amp;' pointirag cut\nthat the  g\u00e9\ufb01\ufb01\u00e9any {31:}i}\u20acCi\u20ac{i\n2es.4,2o,\"7?;&lt;9&#039;:\u00e9};. ih\u00a7e&#039;:--.:;:is\u00a7\u00a7\u00a7j&#039;:1\u00e9:%$\u00a7&quot;3--towards &#039;f..Sectiarz 18 &lt;:::f 2:316 Karnataka Saj\ufb01s Tax\n\nA\u00e9t,.1_4:&#039;}.\u00a7r5v?.&#039;\u00a7:f\u00a7;\u00ab;*?:Sher: &quot;K.S.T. Act, 2195?&quot;) was liabla far\n\n &quot;-.-e._ ;36nait};?  hence 31$ Asses\ufb01ing Authority imzokat\u00e9\n\n   *:;\u00e9*:;a;;.:i\u00a7:1 9(2) of the i\ufb01entmi S8363 Tax Act, 1956 {far short\n\n.*:.%::.T$.r:&#039;. Act, ;29.{)U Eh-3 excess  - 'i\"?i\u00a3s;\u20acf:}_I4'::*i::;;';\n\nwhen Carried in appeai 1\"\u20acgiiSE\ufb01'i'\ufb01(Z\u00a7 \u00a3?iS'{\u00a7STf}\u00a7\u00a7?:.[ v\n\n{)6 befare the giaint {3ommissi o'1:*.s;.\u00a7:r of C@?n1n_1erciE3l Taxes,\nE\u00a7y's0;\"e i;'3iv\u00a7.si0:\"1, \u00a7\u00bb\ufb01\u00a7i\u00a7\u20ac:*F\u00a7'ri,_\ufb01;aS2.j_&lt;iviS\u00a71;fi3&#039;.\u20ac2\u00a7%\u20ac:::?i by or\u00e9er dateci\n\n28.1.2005<\/pre>\n<p> A11I1e?mre&#8211;:&#8217;T&#8217;I\u00a7&#8221;&#8216;. .  {he said ardar,<\/p>\n<p>$5&#8217;  bafore {I16<\/p>\n<p>Jeiiitiolzsr .. i&#8217;3I&#8217;e\u00a7\u00a53&#8217;i&#8221;1&#8242;&#8221;\u20ac\u20aci &#8216;V<\/p>\n<p>KaI&#8217;I18;f\u00a3\u00a7(a &#8220;i7::\ufb01i&#8217;i3&#8217;:;21..a1 at Bazigaiore, z\ufb02r\ufb01ciz &#8216;\ufb01gfl\u00e9ill<br \/>\n::2u%}*beCAi&#8221;&#8216;\u00e9%vii&#8221;31  261 \/ 66 was diS1&#8217;I1iSS{3{i<\/p>\n<p>by a;{:c;:11.1&#8221;:2&lt;\u00a7.V\u00a71 V-._r}c11e1:* ti\u00e9xt\u00e9\ufb01i 19.12.2868, irzzpugzed i&#8217;1\u20ac1&#8217;e:E.;;3..<\/p>\n<p>V &#8220;E:&#8217;\u00a7&lt;~::.:iCe_, &quot;&quot;\u20ac.\u00a7\ufb01S&#039; &#039;pagtitism.\n<\/p>\n<p> :;_ _ :&#8217;37j3&#8217;\ufb01\u00e9 pet,i:i.&lt;;2ne;&quot; has raises} {he foiiawing<\/p>\n<p> ._3u Ezsiaritiai questian 0f1aw:&#8211;\n<\/p>\n<p>&#8220;&#8216;%\u00a7iE&#8221;:\u00e9:t\u00a7161* an &#8216;aha facts anczi iiifid\ufb01i&#8221; the<br \/>\n\u20ac:ii&#8221;iL&#8217;}.1I&#8217;E18i31&#8243;}\u00a3Si\u20acS of she ca-$6 \u20ac316<br \/>\n.E{a}:&#8217;:1ai:a\u00a3{a z\ufb01ppei\u00e9ata &#8216;}&#8221;riE&gt;u:1ai wag Z&#8221;ig,3&#8242;:&#8217;\u20ac.<br \/>\nin fioldizig that the 16?}? 0%&#8221; p&amp;I1a1ii\u00a7:&#8217;<\/p>\n<p>2231:1521&#8242; Saciisn 9%} sf the \u00a333&#8242;? \u00a303 I&#8217;Ei.&#8217;\u00bbZi{3z at\/R<\/p>\n<p>with S\u00e9cti\u00e9zzz 18;: er the KS?!&#8217; Act 33%  &#8216; <\/p>\n<p>has &#8216;$16 \ufb01xssesging ;%z;1&#8217;\u20ac}&#8221;z0:&#8221;itj-5%&#8217;  V&#8217;<br \/>\n{\ufb01{)1&#8243;1\ufb01E&#8217;II1{i(\u00a7 by me<br \/>\nAuthority is corre*&#8217;4___. V   &#8216;v .<\/p>\n<\/p>\n<p>4. &#8216;ii&#8217;her\u20ac: is \ufb01g   2 9f<br \/>\n$e&lt;:i&quot;:i0n E? cf {he    .4  \u00a2n1p0w\u00a7:*s the<br \/>\nauiiaority to iggpzjse  &#039;  whiia Section<br \/>\n38251 of  :&#039;iv9$?&#039;  for penaizy f\u00e9ilti&#039;<br \/>\n&lt;::\u00a3ie&lt;:E:i2:\u00ab11-V   Sectiori E8, which<br \/>\nn1az1d\u00a7\u00a7Li\u00a2s&quot;  shaii :10: co\ufb01ect. 3:1};\n<\/p>\n<p>amaamt E:\u00a7,%&#8221;-4\u00a7*;a};?V of \ufb01ap\u00e9z &#8216;~g.&gt;:i a 13:6 0:&#8217; rates exse\ufb01d\u00e9glg tbs<\/p>\n<p>  1&#8243;at\u00a3%{&#8216;}3r;{j?a:a=;s at \u00e9L\u00a5%:i:;t,%: he is Eiabie {:13 pay tax Uil\ufb01i\ufb01i&#8217; {\ufb01e<\/p>\n<p>&#8220;=V A{\u00e9\u00a7; &#8216;%Vs\u00a2\u00a2:1\u00a2:&#8217;; fi\u00e9sma 3:&#8217; ma }.~&lt;L.S,&quot;\u00a3&#039;.A{:\u00a7;, 2%? makes it<\/p>\n<p>3_Ei}&#039;?;I;;\u00a3\u20ac\u00a78LI3?:ljkt. that Wham am}; aznozsam. is sa\u00e9cuiazed<\/p>\n<p>&#039;fby-&#039; wa\u00a7;Qi&#039;:T tax, or purporting is be by way of tax from <\/p>\n<p>&quot;&#039;:V&#039;\u00a7s&amp;r$5}\u00e9}:1 by any deaiar in cozztraventioa af Saeiiorz 18,<\/p>\n<p>K  vzf.1i1eih\u20ac:* }&lt;:nowi:1g1y mi not, 3113?: d\ufb01akiif Shel}, pa}-1* {ha<\/p>\n<p> entire amaurxt $9 Caiiecte\u00e9, t0 the agges\ufb01ing aufhor\u00e9tjg&#039;<\/p>\n<p>Wifhifl Ewamigf d&amp;3:$ afmr the c\ufb01age Qf {he mazitb in 13;\u00a7&#039;3;i::\u00a7&#039;1<\/p>\n<p>M<\/p>\n<p>such ammmt was coiiected, I}{)tW&quot;itFiSf,\u20acII1&amp;iI&quot;1g <\/p>\n<p>dealer is not liable &#039;to pay such amount  .\n<\/p>\n<p>{H11}? .3 part ofii; is due from him astax Lr_::?;d\u20ac:&#8221;&#8211;\u00a7&#8217;._&#8217;1_*.\u20ac%&#8221;;\u00a2%(::t,. <\/p>\n<p>:3. In {has facts  iaiu Vfgaiicedff,S\u00a7,i\u00a7J1\u00b0a,&#8217;:  i*;i2\u00e9V <\/p>\n<p>question far C\ufb01iisid\ufb01faii\ufb01\ufb02 isfi\u00bb  \u00bb<\/p>\n<p>&#8220;Whei:heI&#8217; 1u:h?eT  C&#8217;:9&#8242;:13 missione1&#8221;\n<\/p>\n<p>{asf C(:=mme:1fr:&#8217;ia1 j &#8220;rax\u00a2s{*?m:;s1t:on&#8211;1},<\/p>\n<p> %f&#8217;iIij,~\u00ab&#8221;SV\u00a2::&#8217;e  %;~1g=m izfifriposing penalty<br \/>\n 01:: &#8216;{i1\u00e9:&#8221;;\u00a7ttI:itir;i1\u00abs::9&#8243;&#8216;i?;\u00a7I&#8221; having sbown E1116<br \/>\na3f:1\u00a3::,1I1i.&#8217;&#8211;z3f&#8221;&#8216;3g&#8217;:\u00abi*; \ufb01g &#8216;Tax in its remi*;:1s&#8217;.\u00bb*&#8221;<\/p>\n<p>  L\u00e9\ufb01\ufb01\ufb01u\u00e9atadiy, \u00a7E3S5.?'{)Z{i\u00a7&#8217;1\u00a7 Subsmtien {:2} if<\/p>\n<p>&#8211;the C.S.&#8217;T. Act, 1956, &#8216;aha panalty G?\n<\/p>\n<p>:2&#8217;s.&lt;\u00a7;&#039;?9?&#039;:&#039;\u00e9i:%_.:3@ repr\u00e9sailts 13% at&#039; 225.9-&quot;?,9:,:32&lt;:~2.e&#8217;:;%:iar1e:: &#8220;Fha p\u20aci\u00a7&#8217;ai0:2$:*&#8217;\u00a7 case is ma&#8217;:<\/p>\n<p>  $16 \u00a7*\u20aci{11&#8217;ifiS filed; de\u00e9siar\u00e9ng R$.4,2{\u00a7,?&#8221;?,954.{}(I2 being \u00ab&lt;35\u00a7z&quot;e<\/p>\n<p>CS&#039;? was a Zmnaf\u00e9de miaake (\u00a3113 EC: 8 fauit ii&quot;: antwiszg<\/p>\n<p>\u00e9he ma\ufb01a in the S\u00a7;:ni:2; Acmunt\u00e9lig System  <\/p>\n<p>a 13138. of fiiing a return _\u00a20ii\u00e9%t}&#8217; E5 c:;Qn&#8217;side1F a\u00e9 to :\u00a5f1et.:1er Elie dr::&lt;:ia1&#039;aii0r: Qf<\/p>\n<p>  , was ma\u00a2\u00a2\u00ab*w:m maia\ufb01cie and Lzxzreasenahie<br \/>\n\u00bbi3?:ie}::ti(;r;S.v.$&#039;t-. is I&quot;1%\u00a7};6S$ {Q state \u00a3113? the peti\u00e9ianer<\/p>\n<p>&quot;&quot;1:*,aV.*:&quot;..s.&#039;-3&#039;.:;%;=;gVV&quot;\u00a7&quot;;:&#039;i5&#039;\u00a7:\u00bb.-&lt;1  mmm riieciarirzg E316 311101211: sf {EST<\/p>\n<p>CGE.\u20ac&#039;Ct\u20ac\u00a7 .  4%? {ha mntexition advaneed \u00a3113: me<\/p>\n<p>u  was; an 8_CC{}1iZ);i af an ermr in fmdirag {E16<\/p>\n<p>&quot;pf&amp;r.t%r:1;ia;* sa\ufb01a in the accmzrztirzg ssysi\ufb01m, wag gm<\/p>\n<p>   aiigzzabie C0z:tenti:T %\u00a7m&#8217;s*:):}sm\u00a7<br \/>\nSTEEL I.If\ufb01&#8217;TEB ,_ST2\u00a7 \u00a7.$ &#8220;&#8216;\u20ackR\u00a5SSA j&#8217;1970(.2s;<\/p>\n<p>STC 211; am ib\ufb02Q vg%%dVV  f\u00a73\u00a3&lt;1&#039;MIf;;&#039;\u00a7\u00ab.2&#039;fIvf &#039;~&#039; ;~.m;aKE:&#039;r1:~$&lt;;;RE: z%\u00a7\\&#039;=\u00a3&#039;}<\/p>\n<p>{)&#039;I&#039;}\u00a7E\u00a7\u20ac1S..V_{\u00a75;:E\u20ac f:&lt;:;a1A%k::{:;-%;ax ;j4%:;:;;.<\/p>\n<p>&#8221;   %ia\u00a7?i\ufb01g&#8212;-:*:;~:ia:niz1eci \u20ac316 ardarra 6}&#8221; {E35 \ufb01xsgessizzg<\/p>\n<p> Ea? :\u00e9;is a3 the \ufb01ppe\ufb01aite \ufb01uihez\ufb01ti\ufb01s, we are of<\/p>\n<p>ti}? E\u00e90z2s\u00a7\u00e9:\u00e9.1j:=:&#8217;3d o\u00a7i:1\u00a7a:&#8217;:: :35: iii\ufb01f\ufb01 is faiiure :0 Z&#8217;iitCGF:i\u00a7 2;<\/p>\n<p>&lt;._\ufb011:di1&#039;:*g  31:3 is wfzether ifxe igzcairestraass sf the 1&quot;\u20ac*:&#039;:1m1} as<\/p>\n<p>V&quot;-&quot;_:;\u00a7.ai14:i&#039;ed 31:}; \u00a3316 gsiitiener wag \u00e9u\ufb01 ti; wag: af $9.335&#039;: an the<\/p>\n<p>   33511&#039;: mi&#039; Eta \u20ac1:1\u00a7\u00a7.&lt;:23,re\u20ac and that thsre was :20 Ieasgnabi\u00e9<\/p>\n<p>V&#039; $\u00a7{p\u00a7aZ{}\u00a3ii\u00a7\u20ac}IE ibrihcazning fmxn \u20ac316 assessea far gash<\/p>\n<p>waiit of cam arm Eizsrefare? ii: {zsuid \u00a335 iilferr\u00e9ii that. the<\/p>\n<p><span class=\"hidden_text\">9 <\/span><\/p>\n<p>J<\/p>\n<p>:*et.w:*z1:\u00ab; {\ufb02ed is 2:1 deiiberate feaise \u00a7j&lt;3t.fpii&#039;:1$,&#8211;wA.:&quot; _&#039;&quot;I&quot;}:1\u20ace&#039;  <\/p>\n<p>au\u00e9heriiies haasizig faji\u00e9\ufb01 ta  I\ufb01linid .,g\u00e9}<\/p>\n<p>::oI1{.t3r:tion, it carmot but bf: $ai.{i\u00e9\u00a7;.?1gt= the  :1-f&#039;;:\u00a7:\u00ab::&quot;:  L.<\/p>\n<p>15sSSf3SSiHgf Au\u20ac:i10\u00a7&#039;;i&#039;\u20acjjg \ufb01nn6%ii1\u00a7f\u20ac4&quot;A&quot;  &#039; f\u00e9h\u00e9v; opsiers<br \/>\nimpugne-:i of 4. 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