SASKEN COMMUNICATION TECHNOLOGIES LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS appeal filed under Section 22(1) of Karnataka Sales Tax Act, 1957 (for brevity the 'Act') is directed against the appeal order passed by the Joint Commissioner of Commercial Taxes (Appeals -4), Bangalore (for brevity, 'FAA') bearing No. KST/AP.67/2009 -2010, dated 30 -11 -2012 for the assessment year of 2004 -2005. The appeal was dismissed by upholding the order passed by the Deputy Commissioner of Commercial Taxes (Investigation), Bangalore (for short, 'AA') on 8 -9 -2009 under Section 8A(5)(a) of the Act. The brief facts involved in the appeal are stated thus:

(2.) THE appeal order of FAA is impugned in the present appeal. It is alleged that the lower authorities have wrongly understood the nature of commodity of computers as not being machinery and thereby negated the benefit of the notification available to the appellant without justification and in addition, levied maximum penalty equal to the amount of tax levied though there was no mala fide intention in claiming the benefit of notification to which the appellant was legally entitled. Accordingly, the appellant submits that the orders of lower authorities are legally erroneous and unjustifiable. It has further pleaded to set aside these orders and allow the appeal.

(3.) IN view of the grounds urged in the appeal, the following points arise for our consideration: