M.M. PATTANASHETTY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE above appeal was admitted on 19 -1 -2010 to answer the following substantial questions of law. -

(2.) AFTER hearing we have noticed that without answering all the questions of law framed herein, the matter is required to be remanded to the Revisional Authority to consider whether the Revisional Authority was competent to revise the order dated 19 -4 -2007 when there was an order of reassessment passed under Section 39(1) of the Karnataka Value Added Tax Act, 2003, on 17 -10 -2007.

(3.) THEREAFTER the Deputy Commissioner of Commercial Taxes (Audit -3) has passed a regular assessment under Section 39(1) of the Karnataka VAT Act, 2003, on 17 -10 -2007. Against the regular assessment passed by the Deputy Commissioner, the assessee has not filed any appeal because he is satisfied with the order. But the question is that when Regular Assessment Order has been passed on 17 -10 -2007, whether the Revisional Authority would get jurisdiction to review the order passed by the First Appellate Authority against the order passed as a protective assessment order because any order passed as a protective assessment will merge with the regular assessment. In other words the protective assessment order passed under Section 38(5) would merge with the order passed under Section 39(1) of the Karnataka VAT Act. Therefore we are of the view that in view of the order of reassessment passed under Section 39(1) of the Act for the entire year 2006 -07, it is for the Revisional Authority to reconsider the entire matter afresh in accordance with law. Since the Revisional Authority has exercised its power and revised the order passed by the First Appellate Authority, which appeal was filed against the protective assessment order, as there is no opportunity for the Revisional Authority to consider the order passed under Section 39(1) of the Karnataka VAT Act, we set aside the order dated 4 -12 -2009, passed by the Revisional Authority, as per Annexure -E to the appeal, without answering the questions of law framed in this appeal the matter is remanded to the Revisional Authority to dispose of the revision in accordance with law. While doing so the Revisional Authority shall consider the effect of the order of regular assessment passed under Section 39(1) of the Act.