Canara Interlock & Designer Tiles v. State of Karnataka

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The Tax Publishers 2019 TaxPub(VAT) 0430 (Karn-HC) : (2019) 090 ITPJ (V) 0104 Canara Interlock & Designer Tiles v. State of Karnataka KARNATAKA VALUE ADDED TAX ACT, 2003 --Reassessment--Reassessment order made to give effect of order of CourtPowers of assessing authority ----Proceedings sought to be re-opened under section 41 of the Karnataka Value Added Tax Act, 2003 on the basis of Court's judgment is not permissible. If at all, it is the revisional authority who may be vested with such power and not the assessing authority. --Assessee challenged the reassessment orders passed under sections 39(2), 72(2) and 36(1) of the Karnataka Value Added Tax Act, 2003 as well as consequential notices of demand issued. Case of assessee was that the reassessment was made only to give effect of the order of Court. . *Held:* Proceedings sought to be re-opened under section 41 of the Karnataka Value Added Tax Act, 2003 on the basis of Court's judgment is not permissible. If at all, it is the revisional authority who may be vested with such power. Assessing Authority invoking the provision under section 39(2) may not be appropriate, more particularly to give effect to the order of the Apex Court. In essence invoking of powers under the specific provision has to be made known to the assessee as the powers of reassessment under section 39(2) and rectification under section 41 are exercisable in different fields and providing an opportunity to meet such invocation of section 41 in particular, is sine qua non before passing the orders. Therefore, reassessment orders passed under section 39(2) were quashed. Karnataka Value Added Tax Act, 2003 Section 39 *REFERRED :* 1. The Asstt. Commr. of Commercial Taxes, (Enforcement) -1, The Commissioner of Commercial Taxes and State of Karnataka V. M/S. H.H. Cement Products And M/S. Peeci Industries in (Writ Appeal Nos. 16575-585/2011(T-RES) in W.A. No. 5798/11 & IN W.A. Nos. 16575-585/11, dt. 23-3-2016) 2. M/s. Kotak Mahindra Prime Limited v. The State of Karnataka & Ors. in (Writ Petition Nos. 33089-33126 of 2015 & 4480-4489, dt. 8-2-2016) 3. M/s. Amma Construction India (P) Ltd. v. The Asstt. Commr. of Commercial Taxes & Ors. in (W P Nos. 54597-608/2014 (T-RES), dt. 4-6-2015) 4. State of Karnataka v. Centum Industries (P) Ltd. in (STRP Nos. 294 of 2011, STRP Nos. 210 of 2013`, dt. 31-7-2014) 5. and Dy. CIT & Ors. v. M/s. Simplex Concrete Piles (India) Limited (2013) 358 ITR 129 (SC) : 2012 TaxPub(DT) 3096 (SC) SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2019 TaxPub(VAT) 0430 (Karn-HC) : (2019) 090 ITPJ (V) 0104

Canara Interlock & Designer Tiles v. State of Karnataka

KARNATAKA VALUE ADDED TAX ACT, 2003

--Reassessment--Reassessment order made to give effect of order of CourtPowers of assessing authority ----Proceedings sought to be re-opened under section 41 of the Karnataka Value Added Tax Act, 2003 on the basis of Court's judgment is not permissible. If at all, it is the revisional authority who may be vested with such power and not the assessing authority. --Assessee challenged the reassessment orders passed under sections 39(2), 72(2) and 36(1) of the Karnataka Value Added Tax Act, 2003 as well as consequential notices of demand issued. Case of assessee was that the reassessment was made only to give effect of the order of Court. . Held: Proceedings sought to be re-opened under section 41 of the Karnataka Value Added Tax Act, 2003 on the basis of Court's judgment is not permissible. If at all, it is the revisional authority who may be vested with such power. Assessing Authority invoking the provision under section 39(2) may not be appropriate, more particularly to give effect to the order of the Apex Court. In essence invoking of powers under the specific provision has to be made known to the assessee as the powers of reassessment under section 39(2) and rectification under section 41 are exercisable in different fields and providing an opportunity to meet such invocation of section 41 in particular, is sine qua non before passing the orders. Therefore, reassessment orders passed under section 39(2) were quashed.

Karnataka Value Added Tax Act, 2003 Section 39

REFERRED : 1. The Asstt. Commr. of Commercial Taxes, (Enforcement) -1, The Commissioner of Commercial Taxes and State of Karnataka V. M/S. H.H. Cement Products And M/S. Peeci Industries in (Writ Appeal Nos. 16575-585/2011(T-RES) in W.A. No. 5798/11 & IN W.A. Nos. 16575-585/11, dt. 23-3-2016) 2. M/s. Kotak Mahindra Prime Limited v. The State of Karnataka & Ors. in (Writ Petition Nos. 33089-33126 of 2015 & 4480-4489, dt. 8-2-2016) 3. M/s. Amma Construction India (P) Ltd. v. The Asstt. Commr. of Commercial Taxes & Ors. in (W P Nos. 54597-608/2014 (T-RES), dt. 4-6-2015) 4. State of Karnataka v. Centum Industries (P) Ltd. in (STRP Nos. 294 of 2011, STRP Nos. 210 of 2013`, dt. 31-7-2014) 5. and Dy. CIT & Ors. v. M/s. Simplex Concrete Piles (India) Limited (2013) 358 ITR 129 (SC) : 2012 TaxPub(DT) 3096 (SC)