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TMI Blog2011 (9) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... , Hcgp for the Respondent JUDGMENT 1. This appeal is by the assessee challenging the order passed by the Additional Commissioner of Commercial Taxes Zone I Bangalore who has passed the impugned order invoking his revisional power under Section 64(1) of the Karnataka Value Added Tax Act, 2003 (for short hereinafter referred to as 'KVAT' Act) setting aside the order passed by the joint Commissioner of Commercial Taxes (Appeals). 2. The assessee is a registered dealer under the KVAT Act and also under the Central Sales Tax Act, 1956. It is a Public sector undertaking engaged in refining crude oil and marketing various petroleum products in India. Their market share is approximately 26%. In Karnataka, they operate depots at Mangalore, Dharwad and Solur. Their operations consists of procurement of various petroleum products from outside Karnataka by way of imports and interstate purchases and from within Karnataka by way of local purchases. The petroleum products so procured are disposed by way of sale locally or in the course of interstate trade or commerce and to some extent by way of stock transfer to its own depots located outside Karnataka. One of the major petroleum pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commercial Taxes passed an order dated 19.06.2008 rejected the claim of the assessee. Subsequently, for the assessment years 2005-06 and 2006-07, he rectified the mistake, which were apparent on the record and passed a modified order under Section 69 on 11.07.2008. Aggrieved by the said orders, the assessee preferred an appeal before the Joint Commissioner of Commercial Taxes. During the course of the appeal, the assessee produced the copies of purchase bills and stock transfer memos before the Joint Commissioner showing the one-to-one correlation not only between the purchase of LPG from HPCL to that of stock transfer of very same goods to its own depots outside the State but also LPG sold locally. After examining the records, an order dated 27.09.2008 came to be passed giving a clear finding that there is one-to-one correlation between the purchase of LPG from M/s. Hindustan Petroleum Corporation Ltd, to that of the stock transfer of very same goods outside the State and therefore, held that the assessee to claim the benefit of input tax credit on the local registered dealer purchases of LPG corresponding to those stock transfers in accordance with the provisions of Section 11(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterference is required. If for any reason, the Court were to hold that the order passed by the Revisional Authority is not proper as he has not looked into the accounts, after setting aside the order of the Additional Commissioner, the matter may be remanded back to the Appellate Commissioner or the Original Authority for fresh consideration in accordance with law. 5. From the material on record, it is clear that while Deputy Commissioner issued notices proposing to apply Section 17 of the Act, the assessee did not produce all the relevant documents before him, It is in the absence of the said documents, the said order came to be passed by the. Deputy Commissioner, However, in an appeal, the assessee has produced all the relevant documents. After going through the said documents, this is what the Appellate Authority has held as follows: "On perusal of the copies of purchase bills, stock transfer memos, hire charges paid to transporters, etc., produced by the appellant for having purchased LPG from M/s. Hindustan Petroleum Corporation Ltd., and thereafter stock transferred outside the State, it is noticed that the appellant after purchasing LPG from M/s Petroleum corporation Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anker number mentioned in the stock transfer memos, the tanker which transported the goods to the doors of the assessee and without unloading, in the very same tanker the goods got transported by way of stock transfer to its own depots located outside Karnataka, the Appellate Authority held that there is one-to-one correlation between the purchase of LPG from HPCL to that of the stock transfer of very same goods outside the State. Therefore, it held that the assessee is eligible to claim benefit of input tax credit on the local registered dealer purchases of LPG corresponding to those stock transfers in accordance with the provisions of Section 11(a)(5) read with Section 14 of the Act. Therefore, the finding recorded by the Appellate Authority is purely a question of fact which he recorded after going through the records produced before him. Though the Revisional Authority has the jurisdiction to interfere with such orders if they are to be prejudicial to the interest of the revenue but before exercising of that power, the ingredients mentioned in the Section are to be satisfied. In Para 4, we get the reasons interference. "That he has verified evidences of local purchases of tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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