MANASA ELECTRICALS CO Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) As the appeals arise from the common order passed by the Additional Commissioner of Commercial Taxes (hereinafter referred to as 'Revisional Authority' for the sake of convenience), they have been considered simultaneously.

(2.) The short facts of the case are that the appellantassessee filed the returns for the assessment year 2005- 2006 and a particular amount of tax payable was shown in the returns. The assessee did not file revised return within the prescribed period of six months, but filed the revised return after the expiry of a period of six months. In the revised return, the net effect was not the liability to pay any additional tax, but was the refund claimed of a substantial amount by showing that the input tax credit was higher than the tax payable. The assessing authority assessed the returns, but did not accept the revised return since it was outside the period of six months and hence, the assessment orders were issued, demands were made and the interest and penalty were also imposed.

(3.) The assessee carried the matter in an appeal before the first appellate authority, namely the Deputy Commissioner of Commercial Taxes. The first appellate authority found that even if the revised return was after the expiry of a period of six months for the claim of input tax credit, the same was acceptable and hence set aside the order of the assessing authority and directed to make recalculation of tax amount with proportionate interest and penalty.