9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 546 - HC - VAT and Sales TaxMaintainability of petition - statutory remedy of appeal - Classification of goods - water and sanitary equipment - whether classified under entry 3(2) of Schedule III, appended to the KVAT Act, 2003, attracting tax at 4 or 5 per cent or under entry 101 of SRO 82 of 2006, attracting 12.5 per cent? - Held that - The petitioner may have a good case on merits. That does not mean that we should ignore the statutory remedies available before its knocking the doors of this Court. Despite my repeated queries, as I have already mentioned, the petitioner s counsel has simply persisted with the merits of the matter and has not supplied any valid reason why I should entertain this writ petition disregarding a statutory remedy. The writ petition raises issues that can be addressed eminently by the appellate authority, as set out in the KVAT Act. Petition closed leaving it open for the petitioner to exhaust the statutory remedy.
Issues: Classification of goods for tax purposes under different entries of the KVAT Act, 2003.
The judgment involves a dispute regarding the classification of goods for tax purposes under different entries of the KVAT Act, 2003. The petitioner, a trader of water and sanitary equipment made of brass, seeks classification under entry 3(2) of Schedule III, attracting a lower tax rate. The Revenue, however, argues for classification under entry 101 of SRO 82 of 2006, attracting a higher tax rate of 12.5%. The assessing authority issued an order of assessment (Ext.P8), prompting the petitioner to file a writ petition challenging the decision. The Government Pleader raised an objection to the writ petition, citing the availability of an alternative remedy. The petitioner's counsel argued on the merits, contending that the assessing authority's decision was erroneous and contrary to law. The counsel highlighted a previous judgment (Ext.P5) by the Court, which upheld a clarification (Ext.P3) by the Commissioner regarding the tax rate applicable to the goods in question. The counsel emphasized that the respondent authorities should not have relied on a previous plea (Ext.P4) that was nullified by the Court's judgment (Ext.P5). The Court acknowledged the potential merit in the petitioner's case but emphasized the importance of exhausting statutory remedies before approaching the Court. Despite the petitioner's counsel focusing on the merits of the case, the Court deemed it necessary for the petitioner to pursue the available appellate authority under the KVAT Act. Consequently, the Court closed the writ petition, allowing the petitioner to pursue the statutory remedy. To facilitate this process, the Court granted a two-week deferment of coercive actions by the authority to enable the petitioner to approach the appellate authority effectively.
|
