VIJAYALAXMI STEEL HOUSE, REP. BY SRI. M.S. PRABHU MANAGING PARTNER Vs. THE STATE OF KARNATAKA REP. BY FINANCE SECRETARY, THE COMMISSIONER OF COMMERCIAL TAXES AND THE COMMERCIAL TAX OFFICER AUDIT I, VAT DIVISION

JUDGEMENT

(1.) PETITIONER has sought for a writ of certiorari to quash the Notification issued at Annexure 'D' the clarification issued by the 2nd Respondent at Annexure 'B' and the reassessment order and the consequential demand notice issued by the 3rd Respondent at Annexure 'E' and 'F' respectively.

(2.) PETITIONER is a dealer registered under the Karnataka Value Added Tax Act of 2003 dealing in iron and steels products and apart from that, he has also undertaken sale of old cars. The 3rd Respondent issued a notice proposing to levy tax @ 4% on the sale of used cars on the basis of notification dated 30.3.2007 issued by the Government against which, Petitioner approached the 2nd Respondent -Commissioner of Commercial Taxes, for clarification as to the rate of tax wherein the 2 Respondent having confirmed the notice, levied the tax at 4% on the sale of used cars by issuing a clarification based on which, reassessment order has been passed by the 3rd Respondent as per Annexure 'E' for the month of March 2008 and also issued a demand notice. Hence, Petitioner is before this Court.

(3.) ACCORDING to the Petitioner's Counsel, the tax is to be imposed on the sale of old cars based on the difference between the taxable turn over and tax paid on the purchase value. Without taking into consideration the notification at Annexure 'A' and other notifications which does provide for exemption, the impugned order has been passed at Annexure 'E' by way of reassessment dated 30.6.2010 and also consequently, demand notice is issued as per Annexure 'F'