(1.) This Revision Petition by the Revenue, directed against the order dated December 14, 2020 in STA No. 25-36/2012 passed by the KAT[Karnataka Appellate Tribunal], Bengaluru, has been admitted to consider following questions of law:
(2.) Heard Shri. Jeevan J. Neeralgi, learned AGA for the Revenue and Shri. K. Mallaha Rao, learned Advocate for the Assessee.
(3.) Briefly stated the facts of the case are, assessee, a tourism hotel unit is a registered dealer under the Karnataka Value Added Tax Act, 2003['the KVAT Act' for short]. It commenced its business in the year 2001. It is engaged in providing boarding and lodging services to its customers. The Government of Karnataka issued a notification[Notification No. FD 70 CSL 97 (1)] dated November 12, 1999 under Sec. 8-A(1) of the Karnataka Sales Act, 1957['the KST Act' for short] exempting sale of food articles and beverages by new tourism units. Assessee has obtained Exemption Certificate dated March 25th, 2003 from the Commissioner of Tourism, Govt. of Karnataka, Bengaluru.