J C INDUSTRIES REP BY ITS PARTNER HEREN N SANGHAVI Vs. STATE OF KARNATAKA BY ITS SECRETARY DEPARTMENT OF FINANCE

JUDGEMENT

(1.) The petitioner-M/s. J.C.Industries has filed this writ petition under Articles 226 and 227 of the Constitution of India challenging the impugned Re-Assessment Order u/s.39(1) of the Karnataka Value Added Tax Act, 2003 Annexure-F dated 20.10.2016 for the Tax Period April 2012 to March 2013.

(2.) The only ground raised before this Court is the alleged breach of principles of natural justice in as much as the adverse material was not confronted to the petitioner and merely on the basis of a Investigation Report, the disallowance of 'Input Tax Credit' was made by the Assessing Authority which too was not supplied to the petitioner-assessee and he was not given an opportunity to controvert the said adverse material namely the alleged Selling Dealer M/s.Rajguru Impex was a bogus dealer or not.

(3.) Upon issuance of notices, the Respondents- Department has filed its Statement of Objections along with certain documents and it has been stated in para 4 of the said Statement of Objections that that said selling dealer M/s.Rajguru Impex was a bogus and nonexisting dealer indulging in only giving "Sales Invoices" and since there was no actual movement of the goods and sales by the said M/s.Rajguru Impex to the petitioner-assessee-dealer, who was engaged in the business of sale of Aluminium False Ceiling, Wall Cladding etc. and had claimed Input Tax Credit inter alia on the alleged purchases of PVC Laminates, Fire rated door plain glass, pre-laminated sheets and Mineral Fiber Tiles etc., from M/s.Rajguru Impex. But upon investigation by the Respondent-Department, M/s.Rajguru Impex was found to be a non-existing and bogus dealer and therefore Input Tax Credit could not have been given to the petitioner-assessee, hence the impugned Re-Assessment Order was passed by the Assessing Authority raising the demand.