IRCON INTERNATIONAL LTD. BY ITS GENERAL MANAGER Vs. JT. COMMISSIONER OF COMMERCIAL TAXES AND STATE OF KARNATAKA BY ITS SECRETARY DEPARTMENT OF FINANCE

JUDGEMENT

(1.) IN these petitions, Petitioner is assailing the order at annexure F passed by the appellate authority under Section 62 of the Karnataka Value Added Tax Act, 2003.

(2.) PETITIONER is a government of India undertaking promoted by the Ministry of Railways registered under the provisions of the Karnataka VAT Act, 2003. Petitioner had undertaken works contract for roads and bridges and other infrastructure developments. For the execution of four lane road from Suratkal to Mangalore - BC Road, Petitioner entered into an agreement for the execution of the project with M/s New Mangalore Port Road Company which is also an undertaking of the Union Government and as per the agreed rate prevailing in the market, proceeded to execute the contract. The difficulty faced by the Petitioner is, during the course of execution of the work, there was considerable delay due to natural calamities i.e., heavy rain during the years 2000, 2007 an 2008 and during the execution of work, due to escalation in the cost/price of goods, they have incurred expenses as a result, there is huge loss and the monthly returns were filed declaring the loss at 19.5%. Annual statement has been filed by the Petitioners for March 2007, March 2008 and March 2009.

(3.) ON serving of the reassessment orders, Petitioner preferred an appeal before the Appellate Authority after having deposited the admitted tax, Earlier the Petitioner had sought for stay of recovery of the demands in WP 36645/2010 and this Court had ordered to dispose of the matter within six months. It appears, the Petitioner has deposited 50% of the tax due and also furnished security towards the balance amount. However, the Appellate Authority by its order at annexure F, calculated the turn over on monthly basis taking the income / turnover uniformly at Rs. 67,50,164/ - for 2006 -07 and at Rs. 3,30,89,781.58 for 2007 -08 and at Rs. 5,67,14.111/ - for 2008 -09 and having allowed deductions towards labour and other charges and on other aspects, assessed the tax due heavily.