PRASHANTHI AFFILIATES Vs. DEPUTY COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) This petition is filed under Sec. 397 read with Sec. 401 of Cr.P.C, praying to set aside the order passed by the Special JMFC (Sales Tax), Bengaluru in C.Misc.No.715/2004 dtd. 26/7/2012, call for Trial Court records and grant any other relief as deems fit in the facts and circumstances of the case.

(2.) Heard the learned counsel appearing for the petitioner and the learned High Court Government Pleader appearing for the respondent.

(3.) The factual matrix of the case of the prosecution is that the petitioner-firm is a proprietorship concern engaged in the catering business. The petitioner - firm is also registered under the provisions of the Karnataka Sales Tax Act, 1957 and Central Sales Tax Act, 1956. It is also contended that the firm is not earning any profit on sale of food in the Canteens such sale is exempted under V schedule under entry 22 of the old schedule and entry No.6 of the present V schedule. If the goods are not liable to be taxed under the Act, such goods are brought under Sec. 8 of the K.S.T. Act and such goods are exempt from payment of tax. The petitioner also maintained the Books of Accounts, as per the provisions of the KST Rules. However, the assessing authority has concluded the assessment order for the Assessment Year 2001-2002 vide order dtd. 25/2/2004 and the assessing authority comes to the conclusion that the petitioner is liable to pay Sales Tax at 12% on sale of food articles and accordingly levied a tax of Rs.35,25,376.00. In view of the order passed under Sec. 12(3) of the KST Act, the respondent has issued the demand notice in Form 6 and demanded the said amount for the assessment year 2001-2002. The respondent has granted 21 days time to pay the arrears of tax. On account of non-payment, petition was filed under Sec. 13(3)(b) of the KST Act to recover the said amount. In order to recover the said amount, the learned Special JMFC (Sales Tax) Court vide order dtd. 26/7/2012, issued an order through FLW through Commissioner, BBMP to attach and effect encumbrance of amount mentioned in FLW to and for property bearing No.14, Khatha 4/8 situated at Beratta Agrahara, Begur Hobli. Hence, the present Revision Petition is filed before the Court.