M/S. A.B.B. LIMITED, REPRESENTED BY ITS VICE PRESIDENT AND HEAD-INDIRECT TAXATION Vs. THE AUTHORITY FOR CLARIFICATION AND ADVANCE RULINGS DEPARTMENT OF COMMERCIAL TAXES

JUDGEMENT

(1.) This appeal is preferred by the assessee against the order passed by the Authority for Clarification of Advance Rulings, Bangalore, rejecting his application on the ground that the application is not maintainable.

(2.) The assessee is a company registered under the Karnataka Value Added Tax Act, 2003 (for short the Act ) and Central Sales Tax Act. The Assessee is engaged in the business of manufacture, selling & trading of Electrical and Automation Products and execution of works contract for Transmission & Distribution and electrical Balance of Plant for power sector, electrification of rail system and Airport Terminals etc.

(3.) The assessee applied by way of a tender, for supply, erection, testing and commissioning of power supply receiving/distribution system, for Bangalore Metro Rail Project, a Joint Venture Project between the Government of Karnataka and Union of India for implementing the Bangalore Metro Rail Project. The assessee was awarded the contract and it entered into a contract dated 14.12.2009. The appellant has filed its monthly returns regularly. On 01.08.2011, the audit authority issued a notice in Form VAT 275 under Section 52(1) of the Act, calling upon the assessee to produce the books of accounts for the purposes of audit, relevant to the assessment year 2010-11, for the first time. On 20.09.2011, the business premises of the assessee was inspected by the Enforcement Authorities. The assessee appeared before the Enforcement Authorities on 26.09.2011 and submitted the required documents. The Enforcement Authority issued a notice under Section 52 of the Act, on 01.10.2011. In reply to the same, the assessee submitted the relevant documents to the Enforcement Authorities on 03.10.2011. Elaborate reply came to be filed by the assessee on 21.10.2011, wherein the assessee substantiated its claim for exemption of certain transactions with Bangalore Metro Rail Company Limited with the relevant documents. Thereafter, on 02.11.2011, proceedings were drawn by the Enforcement Authorities, whereby, the authorized representative of the assessee stated that he would intimate the assessee to remit Rs.2 crores as advance tax and the same would be set off against future monthly tax payments. Accordingly, Rs.2 crores was remitted voluntarily under protest, without any reference or admitting the issue raised by the Enforcement Authorities. The issue raised by the Enforcement Authorities are yet to be decided by the authorities. On 03.01.2012, a second notice came to be issued by the audit authority, in form Vat No.275 under Section 52 (1) of the Act, calling upon the assessee to produce the books of accounts for the purposes of audit, relevant to the assessment year 2010 11.