ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT), UDUPI DISTRICT AND OTHERS Vs. M/S. ABIDHEEP INTERLOCK PAVERS PVT. LTD.

JUDGEMENT

(1.) These appeals are directed against order dated 03/02/2011 passed by the Learned Single Judge in the respective writ petitions whereby, the Learned Single Judge for the reasons recorded in the order, quashed the order passed by the first respondent-authority and issued further directions.

(2.) The brief facts of the case are that in the year 2006, respondent applied for composition of tax under Sec. 15 r/w Rule 137 of the Karnataka Value Added Tax Act, 2003 [hereinafter, referred to as "the KVAT Act"]. The said application was processed and ultimately, on 20/12/2006, certificate came to be issued and a copy of the said certificate is at Annexure "A", produced in the writ petition. On 02/07/2010 roughly after a period of 3 1/2 years, the first respondent issued show-cause notice under Sec. 39(1) of the Act, proposing to levy tax at the rate of 12.5%, for the assessment period of 2005-06, stating that the respondent was not involved in the activity of works contract and therefore, reassessment was to be made. On 10/09/2010, petitioner submitted reply to the show-cause notice and prayed to drop the notice. On 29/09/2010, the first respondent proceeded to pass the order whereby, the reassessment was made and the tax was assessed. The respondent herein challenged the said decision of the reassessment by the first respondent by filing writ petitions before this Court. Learned Single Judge found that as per the due payment made by the petitioner in W.P.Nos. 13172-73/2010, paving bricks are included in Entry-2 of Schedule-III and the liability to pay tax would be at the rate of 4% only and not 12.5% and therefore, the order for re-assessment including the tax of 12.5% were set-aside and consequently, allowed the writ petition. Under the circumstances, the appellant-State has preferred the present appeals.

(3.) We have heard Sri. K.M. Shivayogi Swamy, Learned Addl. Government Advocate appearing for appellants and Smt. Vani H., Learned Counsel appearing for respondent.