JAY ENTERPRISES Vs. ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THE legality and correctness of the order dated May 19, 2009 passed in No. ZAC -1/BGM/SMR -26/08 -09, T. No. 236/09 -10 by the Commissioner of Commercial Taxes, Bangalore. Heard the learned counsel for the parties.

(2.) THE appellant is a proprietary concern registered as a dealer under the provisions of the Karnataka Value Added Tax Act, 2003 (for short, "the Act"). It is the case of the appellant that it undertakes the processing of goods to arrive at rough cast iron castings or machinery components on the materials supplied to the appellant by its customers on job -work basis. In order to finish the goods entrusted on job -work basis, the appellant has to purchase certain consumable articles like oil which would be used in the course of processing of goods, for which, the appellant has paid the tax on the input used for processing for the benefit of supplier.

(3.) AGGRIEVED by the order rejecting the claim of the appellant, an appeal was filed before the Joint Commissioner of Commercial Taxes (Appeals) Belgaum, which appeal came to be allowed. Thereafter, the Additional Commissioner of Commercial Taxes, Zone I, Bangalore, exercising the power vested in him under section 64(1) of the Karnataka Value Added Tax Act, 2003, took up the matter suo motu, which revision petition has been allowed by setting aside the order of the appellate authority. This order is called in question.