BHARTI TELEVENTURES LTD., REPRESENTED BY ITS OFFICER-LEGAL, SRI. PRASHANTH. N., NO. 56, DIVYASHREE TOWERS, BANNERGHATTA ROAD, BANGALORE - 560076 Vs. THE STATE OF KARNATAKA THROUGH THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA THERIGE KARYALAYA,

JUDGEMENT

(1.) The appellant has filed this appeal, being aggrieved by the suomotu revisional order bearing No.ZAC-1/B.Div/SMR-20/2008-09 dated 12-8-2009 passed by Addl. Commissioner of Commercial Taxes, Zone-I, Bangalore setting aside the order dated 14-5-2007 passed by the Joint Commissioner of Commercials Taxes (Appeals), Bangalore (hereinafter referred to as Appellate Authority).

(2.) Appellant is the Public Limited Company and also registered under the provisions of Karnataka Value Added Tax Act, 2003 (hereinafter referred to as "KVAT Act") engaged in the activity of rendering services of Cellular Mobile Telephones to its subscribers, as per the license granted by the Department of Telecommunication, Government of India. As per the said license, the appellant is permitted to maintain and operate Cellular Mobile Telephone services upto the subscriber's terminal connection in the State of Karnataka. In the course of its business, the appellant has dispatched a consignment of 'Recharge Cards', 'Recharge Pins' and 'Recharge Double Scratch', to its distributors for supply to the customers.

(3.) Being aggrieved by the said levy of penalty, the appellant preferred an appeal before the Joint Commissioner for Commercial Taxes (Appeals), Bangalore. The Appellate Authority by its order dated 14-5-2007 allowed the appeal and held that the goods under movement being not taxable under the Sales Tax Act, the question of levying tax under the KVAT Act does not arise. Recharge Cards, Recharge Pins and Recharge Double Scratch are not the goods. However, the revisional authority on verification of the records found that the order passed by the Appellate Authority is erroneous and prejudice to the interest of the revenue.