CASTROL INDIA LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner has challenged the endorsement dated 20.02.2017 and the recovery letter dated 07.04.2017 passed by the Deputy Commissioner of Commercial Taxes.

(2.) Briefly stated the facts of the case are that with regard to the tax period from April 2009 to March 2010 and specifically with regard to the entry tax assessment, a proposition notice was issued to the petitioner by the Deputy Commissioner under Section 5(4), 7(2) and (5) of the Karnataka Tax on Entry of Goods Act, 1979. Immediately on 24.12.2015, the petitioner submitted his reply to the said notice. According to the petitioner, as regards the collection of entry tax in the invoice, the petitioner had immediately issued the credit note before filing the monthly return. The petitioner also submitted further objections-cum-explanation before the respondent No.2 on 02.01.2016. However, notwithstanding the explanation submitted by the petitioner, respondent No.2 passed the assessment order on 28.01.2016 and confirmed the tax liability of Rs.1,31,25,949/- along with interest of Rs.1,64,73,066/- and imposed a penalty of Rs.65,62,975/-. Consequently, on 28.01.2016, respondent No.2 also issued the demand notice for the said amount.

(3.) Since, the petitioner was aggrieved by the assessment order and the demand notice, it had filed an appeal before the Joint Commissioner of Commercial Tax (Appeals-6), Bengaluru. The petitioner not only paid 50% of the tax, interest and penal liability for an amount of Rs.1,80,80,996/-, but also gave a bank guarantee, on 04.04.2016, for an amount of Rs.1,80,80,994/-. Subsequently, the Joint Commissioner has dismissed the appeal and confirmed the demand made in the assessment order dated 28.01.2016.