2004 (3) TMI 725 - HC - VAT and Sales Tax

Summary

Issues:
Claim of concessions under Karnataka Sales Tax Act based on Government Order; Rejection of claim by assessing authority; Filing of rectification applications under section 25-A of the Act; Interpretation of the word "manufacture" by Supreme Court; Assessing authority's actions beyond court directions; Challenge of show cause notices; Scope of assessing authority's jurisdiction in reconsideration.

Analysis:

The petitioner, a dealer under the Karnataka Sales Tax Act, claimed concessions based on a Government Order outlining the industrial policy for certain years. The assessing authority rejected the claim, citing inconsistency with an exemption Notification issued under section 8-A of the Act. The petitioner filed rectification applications, which were also rejected. The matter was referred back to the assessing authority to consider the interpretation of the word "manufacture" as per a Supreme Court judgment.

During subsequent proceedings, the assessing authority issued notices beyond the court's directions, prompting the petitioner to file additional writ petitions. The petitioner argued that the assessing authority was exceeding its jurisdiction by raising new issues in the show cause notices. The court emphasized that the authority's reconsideration should be limited to rectification jurisdiction and not extend beyond it.

The court directed the petitioner to respond to the show cause notices before the authority, allowing six weeks for filing objections. It was clarified that any legal developments regarding the interpretation of the exemption Notification could be raised before the authority for consideration. The court dismissed the writ petitions, granting the petitioner liberty to file objections within the specified timeframe and directing the authorities to pass appropriate orders in accordance with the law.