STATE OF KARNATAKA Vs. ELF GAS INDIA LIMITED

JUDGEMENT

(1.) Learned Government Advocate is directed to take notice for respondents in STRP No. 132 of 2012. The Revenue has preferred STRP Nos. 3, 244 and 245 of 2012 and the assessee has filed STRP No. 132 of 2012 challenging the order dated 15-7-2011 passed by the Karnataka Appellate Tribunal, Bangalore (hereinafter referred to as 'the Tribunal' for short) made in STA Nos. 982 to 984 of 2008, whereby the Tribunal has partly allowed the appeals and set aside the order passed by the authorities below insofar as disallowing discount for the tax period from April 2006 to 31-3-2007 and also directing the Assessing Authority to allow exemption towards discount allowed as per the credit note issued subsequent to the date of invoice and to issue revised demand notice.

(2.) The assessee is a registered dealer under the provisions of Karnataka Value Added Tax Act, 2003 (hereinafter referred to as 'the KVAT Act' for short) engaged in the supply of LPG. The assessments for the tax period April 2006 to March 2007 were concluded under Section 39(1) of the KVAT Act disallowing the discount against which the assessee preferred appeals before the First Appellate Authority who dismissed the appeals confirming the order passed by the Assessing Authority. Being aggrieved by the said order, the assessee preferred second appeals before the Karnataka Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short). The Tribunal has allowed the appeals of the assessee in part and set aside the assessment order passed by the Assessing Authority which was confirmed by the First Appellate Authority to the extent of disallowing discount for the tax period from April 2006 to March 2007. However, the Tribunal declined to grant benefit of exclusion of transportation charges. That is how both State as well as the assessee have preferred these revision petitions.

(3.) This Court had an occasion to consider the question whether the discount falls outside the turnover in the case of Southern Motors, Bangalore v. State of Karnataka and Others, 2014 79 KarLJ 533in W.A. Nos. 5769 to 5785 of 2012 (T-RES), decided on 3-4-2013, wherein it was held that: