UNITED BREWERIES LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE two appeals are filed under Section 22 of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the 'Act') challenging the appeal orders dated 20th October, 2012 passed by the Joint Commissioner of Commercial Taxes (Appeals -6), Bangalore (hereinafter referred to as 'First Appellate Authority' or for short 'FAA') in case Nos. KST/AP/6 and 7/12 -13 for the financial years ending 31st March, 2004 and 31st March, 2005. The FAA by the said common impugned appeal order has allowed the appeals in part and while doing so has (a) deleted the levy of tax, penalty and interest on the amounts received by the appellant as brand franchisee fee from the Beer contract Bottling Units (CBUs) and has (b) confirmed the levy of tax, penalty and interest on the amount received as royalty from the licensee who are engaged in the business of packaged drinking water as consideration received for transfer of right to use the brand name/trade mark of the appellant. Further directions are given to issue revised demand notice to the Deputy Commissioner of Commercial Taxes (Audit -61), VAT Division -6, Bangalore (hereinafter referred to as 'Assessing Authority' or for short as 'AA') who has originally passed the assessment orders for the impugned years 2003 -2004 and 2004 -2005 respectively which has been modified by the FAA as mentioned above. The State has preferred cross appeals against the impugned common appellate order and has requested to restore the original assessment orders for the years 2003 -2004 and 2004 -2005 dated 3rd March, 2011. Aggrieved by this impugned order of the FAA allowing the appeal in part, the appellant namely United Breweries Limited (for short 'UBL') has preferred the present appeals. In turn the State has preferred the cross appeals as narrated above.

(2.) BRIEF facts of the case. - -

(3.) GROUNDS of cross appeal. - -