POETIC INTERIORS Vs. STATE OF KARNATAKA AND OTHERS

JUDGEMENT

(1.) Heard the learned Counsel for the Appellant and Government Advocate representing Revenue.

(2.) The Appellant is a proprietorship concern engaged in the business of interior decoration work on contract basis. The Appellant had reported a gross and taxable turnover of Rs. 1,60,25,743.55 (rupees one crore sixty lakhs twenty five thousand seven hundred forty three and fifty five paise only) and (-) Rs. 17,74,009.59 (rupees seventeen lakhs seventy four thousand nine and fifty nine paise), respectively for the assessment year 2001-02.

(3.) According to the Respondents the Deputy Commissioner of Commercial Taxes (Intelligence) II South Zone, Bangalore, inspected the premises of the Appellant on November 22, 2002 and certain books of account and other documents pertaining to the business of the Appellant were verified for the assessment years between 1998-99 to 2002-03, After inspecting the business premises of the Appellant, the assessing authority took up the final assessment proceedings for the year 2001-02 and issued a pre-assess-ment notice on January 15, 2005 proposing to disallow the deductions claimed by the Appellant under rule 6(4) (m) of the KST Rules, 1957 on the ground that the goods were not used in the same form. In the notice there was a proposal to disallow the claim of the Assessee insofar as deduction on the works contract done by him outside the State of Karnataka.