9911796707
TMI Blog2005 (6) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2002. 2.. Writ petitioner, a dealer under the provisions of the Karnataka Sales Tax Act, 1957, had approached this Court earlier by filing writ petition No. 41311 of 2003 when the very Officer had issued a proposition notice invoking the power proposing revision of the order. However, this Court in terms of order dated September 24, 2003 while directed the petitioner to submit the objections and pursue the matter before the very authority, nevertheless, reserved liberty to move the court if there is any necessity. 3.. Sri Narayana, learned counsel for the petitioner, submits that the respondent No. 2 now in the exercise of the power under section 21(2) of the Act, has passed the order detrimental to the interest of the petitioner; t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility of the petitioner for the period April 1, 2001 to March 31, 2002 under the provisions of section 12(3) of the Act independent of any composition provision, but as a return filed and by computing the tax liability at the applicable rate on the taxable turnover of the value of the works contracts executed by the petitioner, certain tax liability was determined which worked out to Rs. 45,093. 7.. Later, the respondent No. 2 Joint Commissioner of Commercial Taxes (Administration), while perusing the record was of the view that the order called for exercise of his revisional jurisdiction under section 21 of the Act as he was of the opinion that the assessment order was illegal as well as prejudicial to the interest of the Revenue. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for composition by his application dated April 20, 2001, but that in itself is not the end of the matter. The option of composition operates only if the assessing authority permits the option, in the sense that, that the application/request for composition should be accepted by means of an order passed by the assessing authority and in the absence of an order accepting the application for composition, provisions of section 17(6) of the Act do not operate automatically; that the petitioner, in fact, had not acted on the basis of the application as no order had been passed accepting the application, but, in fact, had filed his return in terms of the return dated May 30, 2002 in form No. 4 which is the prescribed form for filing regular ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing for submitting the application in form 8-AA has been amended with effect from June 8, 2001 in terms of the Notification No. FD 123 CSL 2001; that on and after this date, an application submitted in form 8-AA for the purpose of seeking composition under section 17(6) of the Act once filed by the dealer shall not be permitted to be withdrawn by him. If this is the change brought about in the rule, the application filed as on April 20, 2001 which was pending before the assessing authority as on the date when this rule came into existence, in the sense, rule was amended and therefore is governed by the amended rule and the application if cannot be permitted to be withdrawn, the only other result can be that the application is accepted and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is accepted by means of a positive order passed by the assessing authority in terms of section 17(6)(ii) read with rule 8-B(2)(ii) of the Rules. 12.. The resultant position is that in the absence of a positive order accepting the application for composition, there is no composition and as rightly submitted by Sri Narayana, learned counsel for the petitioner, without an order it cannot be simply foisted on the assessee just because at a later stage it is found that the assessment of the turnover on a regular basis is not as advantageous to the department as an assessment in terms of the composition option and the former is detrimental to the interest of the Revenue. 13.. Yet another reason why the order is not sustainable and not in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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