J K INDUSTRIES LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) WRIT petition is by a person, who is a registered dealer under the provisions of the Karnataka Sales Tax Act, 1957 (for short, "the Act"). The claim of the petitioner is that the petitioner is entitled for certain tax benefits in terms of a notification issued by the Government under the provisions of the Section 19C of the Act.

(2.) THE present grievance of the petitioner is that because of the provisions of Rule 20C(1)(c) of the Karnataka Sales Tax Rules, 1957 (for short, "the Rules"), the petitioner has been virtually subjected to tax liability in respect of the goods manufactured and transported to the sub-offices or such branches of the petitioner as also that of an agent within the State.

(3.) A perusal of Rule 20C(1)(c) indicates that it is only a measure for determining the extent of concession that the petitioner can avail of in respect of his tax liability determined under the assessment order. The provision is not one for determining any tax liability of the petitioner. In fact, no tax liability can be fastened on any person under a rule much less under a rule which is for the purpose of giving effect to the provisions of Section 19C of the Act, a provision under which certain concessions are extended to a dealer under the Act by issue of an appropriate notification by the Government. Assuming for arguments sake that the assessing authority has committed an error in computing the extent of concession that the petitioner is entitled to, that is a matter which the petitioner can agitate in an appeal before the appellate forum. The provision is an innocuous one which, if at all, provides for working out concession in terms of Section 19C of the Act, even if the rule is so understood and interpreted by the assessing authority in a manner not so provided in the Rules and to the detriment of the interest of the petitioner, that by itself will not render the rule to be bad.