ABHISHEK SOLVENT EXTRACTIONS PRIVATE LIMITED Vs. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT-3) AND ORS.

JUDGEMENT

(1.) Heard the learned Senior Advocate Shri G. Sarangan appearing for the Counsel for the petitioner, Shri Keshava Murthy and the learned Counsel for the respondent.

(2.) The petitioner is a registered dealer under the provisions of the Karnataka Value Added Tax Act, 2003 (Hereinafter referred to as the 'KVAT Act', for brevity) and is engaged in the manufacture and sale of sunflower oil, by employing solvent extraction process out of sunflower cake. While oil is liable to tax and the by -product de -oiled cake is exempted from tax under entry Serial No. 5(ii) of the First Schedule to the KVAT Act.

(3.) The first respondent audited the books of account for the tax periods April 2007 to March 2008, April 2008 to March 2009, April 2009 to March 2010 and had passed re -assessment orders under Sec. 39(1) of the KVAT Act levying tax, penalty and interest. In doing so, the prescribed authority had allowed the partial input rebate as per Sec. 17 of the KVAT Act, on the value of input namely, sunflower cake used in the extraction of oil.