2019 (6) TMI 375 - HC - VAT and Sales Tax

Comprehensive Karasamadhana Scheme, 2019 - Demand of tax - HELD THAT - Though the contention merits consideration, we are of the opinion that the same as being rendered of academic value in view of the undertaking by the respondent to pay the remaining tax dues by resorting to the comprehensive Karasamadhana Scheme, 2019. The affidavit of the respondent is taken on record. Sales Tax Revision Petitions are disposed off.

Summary

Issues:
1. Application of Comprehensive Karasamadhana Scheme, 2019 for waiver of arrears of penalty and interest under Karnataka Value Added Tax Act, 2003.
2. Jurisdiction of the Sales Tax Appellate Tribunal to condone delay beyond stipulated period.

Analysis:

Issue 1: Application of Comprehensive Karasamadhana Scheme, 2019
The case involved the respondent, a hotel owner, who was a tax payer under the Karnataka Value Added Tax Act, 2003. The respondent had outstanding tax dues amounting to ?1,76,961 as of January 2008. However, the Government of Karnataka introduced the Comprehensive Karasamadhana Scheme, 2019, granting a waiver of 100% of arrears of penalty and interest payable by a dealer. The respondent, in an affidavit, agreed to pay the remaining tax amount of ?91,873 by September 15, 2019, under this scheme. The learned AGA confirmed that the respondent was eligible to benefit from this scheme. The High Court, after considering the scheme and the respondent's undertaking, disposed of the case in terms of the affidavit, allowing the respondent to avail the benefits of the scheme.

Issue 2: Jurisdiction of the Sales Tax Appellate Tribunal
The respondent had initially faced issues with delay in responding to notices and orders related to the tax assessment process. The respondent's appeal before the Joint Commissioner of Commercial Taxes, Dharwad, was rejected in 2013 due to delay. Subsequently, the respondent approached the Sales Tax Appellate Tribunal, which condoned the delay and remanded the matter back to the Assessing Authority for fresh disposal within 120 days. The learned AGA argued that the Tribunal did not have the jurisdiction to condone the delay beyond the stipulated period under the relevant tax acts. Despite acknowledging the merit in this contention, the High Court deemed it of academic value in light of the respondent's commitment to settle the tax dues under the Karasamadhana Scheme. The Court left the issue of the Tribunal's jurisdiction to condone delay open for future adjudication in an appropriate proceeding, and disposed of the Sales Tax Revision Petitions based on the respondent's affidavit and compliance with the scheme.

In conclusion, the High Court's judgment primarily addressed the application of the Comprehensive Karasamadhana Scheme, 2019 for tax waiver and briefly touched upon the jurisdictional aspect related to delay condonation by the Sales Tax Appellate Tribunal.