MFAR CONSTRUCTIONS LIMITED Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) BEING aggrieved by the order passed by the Commissioner of Commercial Tax under Section 22A(2) of the Karnataka Sales Tax Act, 1957 (for short hereinafter referred to as "the Act") dated December 28, 2006, the assessee has preferred this appeal.

(2.) THE appeal is admitted to consider the following substantial questions of law: (i) Whether the respondent was legally justified in rejecting the appellant's contention that its entire turnover being liable to tax under Section 5B, no part of its turnover is liable to tax under Section 6B of the Act? (ii) Whether the respondent is justified in considering the order of the authority dated March 31, 2006 as erroneous and prejudicial to the interest of Revenue warranting interference in proceedings under Section 22A of the Sales Tax Act?

(3.) THE facts leading to this case are as follows: The assessee is a works contractor. He sought a clarification in regard to his liability to pay resale tax under Section 22A(2) of the Act from the Authority for Clarification and Advance Rulings (hereinafter referred to as "Advance Ruling Authority"). The Advance Ruling Authority clarified that the assessee is liable to pay resale tax and aggrieved by the order of clarification, the assessee has filed an appeal before this Court in S.T.A. No. 58 of 2003, which appeal came to be allowed on August 25, 2005 and the matter was remanded to the Advance Ruling Authority to reconsider the matter in the light of the provisions to Section 6B of the Act.