BALAJI COMPUTERS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE Writ Petition are by persons who are registered as dealers under the provisions of the Karnataka Sales Tax Act, 1961 (for short the 'Act'). Petitioners are aggrieved by the notices issued to them by the assessing authority invoking the powers under Section 12 -A of the Act proposing to re -open of the concluded assessments in respect of the 1st petitioner for the year 2001 -2002 and in respect of the 2nd and 3rd petitioners for the year 2002 -2003.

(2.) THE proposition notices indicates that insofar as the levy of turnover tax relating to computer, computer parts and computer peripherals is concerned, there was some escapement from the turnover that was subject to levy; that it was required to be brought to tax by re -opening the assessment and has indicated the proposed amount of tax after such re -opening etc.

(3.) THE re -opening of the assessments in terms of the notices issued during January 2005 is said to be on the basis of a circular No. CLR.CR. 157/2004 -2005 dated 31.12.2004 issued by the Commissioner of Commercial Taxes (copy produced as Annexure -D to the petition), where under the Commissioner has issued directions to all the assessing authorities, that the authorities had not understood the scope and effect of the exemption notification that had been issued in the matter of levy of turnover tax on these items viz., the computer and computer parts; that while the pending assessments were required to be concluded on the basis of the contents of the circular, even assessments that were concluded were required to be re -opened and the mistake that had occurred is required to be corrected. It is at this stage petitioners' seek for interference by this Court through these Writ Petitions.