LAL CONSTRUCTION CO. Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Mr.M.N.Shankare Gowda, learned counsel for the appellant. Mr.Jeevan J. Neeralgi, learned counsel for the respondent. This appeal under Section 66(1) of the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as the Act for short) has been filed by the appellant against the order passed by the Additional Commissioner of Commercial Taxes dated 30.11.2015 under Section 64(1) of the Act.

(2.) The subject matter of the appeal pertains to the assessment period April 2007 to March 2008. The appeal was admitted by a Bench of this Court vide order dated 17.03.2016 on the following substantial questions of law.

(3.) Facts leading to filing of this appeal briefly stated are that the appellant is a registered dealer under the provisions of the Act. The appellant is a partnership firm which carries on the activity of execution of works contract exclusively for Ministry of Defence. During the assessment period in question, the appellant was awarded a works contract by the Ministry of Defence. The assessee filed the return for the assessment period 2007-08. The Deputy Commissioner, Commercial Taxes vide order dated 22.07.2008 passed an order of re-assessment, wherein he allowed the deduction of the value added tax amount deducted at source to the tune of Rs.23,40,187/- by a contractee at the time of arriving at the taxable turn over. Thereafter, the Joint Commissioner of Commercial Taxes initiated the revision petition under Section 63-A of the Act for the assessment period 2007-08, proposing to revise the re-assessment order passed by the Commissioner of Commercial Taxes. The assessee filed a reply to the notice on 10.08.2010 and thereafter, the Revisional Authority passed an order under Section 63-A of the Act dated 16.11.2012, by which the revisional proceedings in relation to deduction of tax at source to the extent of Rs.22,40,187/- were dropped.