SHREE RENUKA SUGARS LTD. Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) SINCE common questions of law and that of fact arise for decision making, petitions are clubbed together and with the consent of the learned counsel, though listed for admission, are finally heard and disposed of by this common order. These two petitions are filed invoking section 23(1) of the Karnataka Sales Tax Act, 1957, for short, "the KST Act", calling in question the common order dated October 10, 2012 in STA Nos. 2196 -2197 of 2011 of the Karnataka Appellate Tribunal at Bangalore, for short, "the KAT".

(2.) FACTS briefly stated are: The petitioner claims to be a company incorporated under the Companies Act, 1956 and registered under "the KST Act" and the Central Sales Tax Act, for short, "the CST Act", carrying on business of manufacture and sale of sugar in the State of Karnataka with manufacturing unit at

(3.) IT is the assertion of the petitioner that the leased units at Aland and Haveri and owned units at and Burlatti, commenced production much later, since new acquisitions of the petitioner -company. According to the petitioner, the purchase of sugarcane liable to tax under section 25B of "the KST Act" at the rate prescribed was declared in the returns of turnover filed declaring the quantity of sugarcane purchased from growers both within and outside the State, and sought the benefit of conversion of the purchase tax due for the assessment years 2006 -07; 2007 -08 to interest -free loan, on the premise that all the five units being new industrial units were eligible for the said tax incentive, hence did not pay any tax due under section 25B of the KST Act.