CANARA INTERLOCK Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These petitions involving similar and akin issues, have been considered together and disposed of by this common order.

(2.) The petitioner in these petitions has challenged the re-assessment orders passed by respondent No.3 under Sections 39(2), 72(2) and 36(1) of the Karnataka Value Added Tax Act, 2003 as well as consequential notices of demand issued by respondent No.3.

(3.) The petitioner is a partnership firm engaged in the activities of manufacture and sale of cement bricks and paver bricks. The petitioner is registered under the provisions of the Karnataka Value Added Tax Act, 2003 ('KVAT Act' for short) and Central Sales Tax Act, 1956 ('CST Act' for short). The re-assessment under Sec. 39(1) of the KVAT Act was carried out for the relevant tax periods and the same was concluded levying VAT on bricks at 5%/5.5%. Subsequently, proceedings under Sec. 39(2) of the KVAT Act were initiated to bring the paver bricks under the Residuary Entry to be taxed at 14%/14.5%. After providing an opportunity of hearing and considering the objections filed by the petitioner to the proposition notices issued, orders were passed under Sec. 39(2) of the KVAT Act confirming the proposals made in the proposition notices and notices of demand were issued accordingly. Being aggrieved by the same, the petitioner is before this Court.