2019 (6) TMI 1704 - HC - VAT and Sales Tax

Levy of tax - movement of goods occasioned from Thane, Maharashtra for executing the works contract in the State of Karnataka would be construed as local sale or not - HELD THAT - The primary issue involved in these petitions as aforesaid is squarely covered by the order of this Court in W.P.No.13607/2017 and allied matters (D.D. 24.04.2018) 2018 (5) TMI 84 - KARNATAKA HIGH COURT in the very same assessee s case relating to the assessment year 2010-11 and the present petitions may be disposed of, in terms of the decision rendered by this Court in the writ petitions as far as this issue is concerned. It is apparent that other issues relating to TDS etc., requires to be adjudicated by the Appellate Authority. Petition disposed off.

Summary

Issues involved:
1. Challenge to reassessment orders for assessment years 2011-12 and 2012-13.
2. Whether movement of goods from Thane, Maharashtra to Karnataka for works contract constitutes a local sale subject to tax under Karnataka Value Added Tax Act, 2003.
3. Adjudication of other issues like TDS by the Appellate Authority.

Analysis:

1. The petitioner contested reassessment orders issued by respondent No.1 for the assessment years 2011-12 and 2012-13. The High Court considered these petitions, which involved similar issues, collectively in a single order.

2. The main issue in question was whether the transportation of goods from Thane, Maharashtra to Karnataka for executing a works contract should be treated as a local sale liable to tax under the Karnataka Value Added Tax Act, 2003. The court noted that this issue was previously addressed in a related case concerning the assessment year 2010-11, and the parties agreed that the decision from that case should apply to the present petitions.

3. The legal counsels representing both parties acknowledged that the primary issue at hand had already been settled by a prior court order related to the same assessee. Consequently, the High Court decided to dispose of the current petitions in accordance with the previous judgment, leaving other ancillary matters, such as those concerning TDS, to be resolved by the Appellate Authority.

4. The judgment clarified that while the primary issue was resolved based on the earlier decision, any additional issues, including those related to TDS, would need to be addressed by the Appellate Authority. The petitioner was granted the opportunity to raise these ancillary matters before the Appellate Authority within four weeks from the receipt of the court's order, ensuring a timely and expedited review without objections based on limitations.

By consolidating the cases, addressing the primary issue based on precedent, and directing the petitioner to pursue remaining matters through the appropriate channels, the High Court's judgment provided a structured and efficient resolution process for the involved parties.