VASAVADATTA CEMENT Vs. THE STATE OF KARNATAKA

JUDGEMENT

(1.) Mr. M.N. Shankare Gowda and Mr.L.B. Bannikoppa Vasan Associates, Advocates for Petitioner Mr. Mallikarjun Sahukar, Government Pleader for Respondent

(2.) The learned counsel for the petitioner Mr.M.N.Shankare Gowda submitted before the Court that the Assessee-petitioner was entitled to avail the benefit of incentive on the basis of eligible investment made under the Certificate issued in favour of the petitioner for the capital investment of Rs.231.48 Crores in terms of G.O.No.CI 41 SPI 96 dated 27.05.1996 and Notification issued vide No.FD 5 CSL 198 (I & II) dated 11.08.1998 to the extent of 80% of the investment made by it for a period of seven years.

(3.) The learned counsel for the Assessee urged that even though the rate of tax chargeable from the petitioner-Assessee could be higher as per Section 8(2) of the CST Act, 1956, in the absence of furnishing of prescribed declaration in forms C/D under CST Act, 1956, but the whole tax liability of the petitionerAssessee deserves to be set off under the Incentive Scheme available to the petitioner during the relevant year. He urged that this aspect of the matter has not been appreciated at all by the learned Karnataka Appellate Tribunal in its order dated 05.01.2012 and the learned Karnataka Appellate Tribunal merely following the decision of this Court in the case of M/s Volvo India Pvt. Ltd., and some other orders rendered by the Tribunal, it has dismissed the appeal of the Assessee-petitioner.