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TMI Blog2012 (8) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... for use of the power generated from the DG set runs contrary to the Government Notification dated November 30, 2001 and it is erroneous in law. The assessing authority after considering the matter in detail reassessed the tax liability and the same was confirmed by the appellate authority. The finding recorded by the assessing authority as well as the appellate authority is purely a question of law. The Appellate Tribunal ought not to have interfered with the same. Hence, the order passed by the Appellate Tribunal cannot be sustained. The substantial question of law framed in this revision petition is held against the assessee and in favour of the revision petitioner. Appeal allowed. - CRP No. 235 of 2009 - - - Dated:- 31-8-2012 - SREEDHAR RAO K. AND MANOHAR B., JJ. For the Appellant : Smt. S. Sujatha, Additional Government Advocate,. For the Respondent : G. Rabinathan and M. Thirumalesh. ORDER:- The order of the court was made by B. MANOHAR J.- The State Government preferred this revision petition being aggrieved by the order dated January 9, 2001 made in STA No. 662 of 2008 passed by the Karnataka Appellate Tribunal, setting aside the order dated A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t oriented unit insofar as importing of DG sets, parts and accessories. Subsequently, the assessment order was reviewed by the assessing authority while it was held that the respondent-company availed of the benefit of the Government Notification dated November 30, 2001 insofar as exemption of imposition of tax on the imported DG sets, parts and accessories. However, the condition imposed in the Government order has not been fulfilled. Further, the respondent was required to use the power generated from the DG sets in the manufacturing or processing of goods for export. Whereas, in the year 2003-04 which was an accounting year subsequent to the year in which DG sets were imported, the respondent made use of the power generated from the DG sets for production of Domestic Tariff Area Unit (DTA unit). Hence, notice has been issued to the respondent under section 6(1) of the Act with the proposition notice for levying entry tax on imported DG sets, parts and accessories thereof. The notice was also issued under section 11A(3) and section 8(2)(ii) of the Act. In pursuance to the said notice, the respondent filed detailed objections. The authorised representatives made available the reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shment of industries in the State and to export the goods to outside countries, the incentives and concessions were extended to such industries. Insofar as 100 per cent export oriented units, the Government has granted exemption from entry tax payable on raw materials, components, packing materials, consumables, machinery and equipments subject to certain conditions that goods are put to use in the manufacturing or processing of goods in the unit located in Karnataka and the goods so manufactured or processed are exported out of territory of India with other certain conditions. In the instant case, for the assessment year 2002-03, the respondentcompany imported DG sets along with parts and accessories for the purpose of generating power. The power generated in the said DG sets ought to have been used for manufacturing or processing of the goods for export. However, the assessing officer noticed that for the assessment year 200203, the respondent-company has not exported any of its goods, but, for the assessment year 2003-04, which was subsequent to the year in which DG sets were imported has exported only for ₹ 10,74,870 as against the total turnover of ₹ 67,55,68,696. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) (ii) under the Act is also contrary to law. For the assessment year 2002-03, i.e., at the fag-end of the assessment year in question, the generator set has been installed and the benefit extended by the Government notification dated November 30, 2001 cannot be denied and sought for dismissal of the revision petition. 9. After considering the arguments addressed by the parties, the substantial question of law that arise for consideration in this revision petition is: (i) Whether the Karnataka Appellate Tribunal is justified in setting aside the order passed by the assessing authority under section 6(1) of levying tax on the DG sets, parts and accessories along with interest and penalty? 10. The respondent-company has imported DG sets, parts and accessories for generating electric supply for production of goods. As per the Government notification dated November 30, 2001, the respondent got exempted the entry tax producing the certificate to the effect that it was 100 per cent export oriented unit. The State Government in order to encourage the export of goods and to earn more foreign exchange in its new industrial policy formulated in 2001 granted incentives and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , (ii) and (iii) above is contravened or not complied with, either wholly or partly, the provisions of sub-section (3) of section 11A of the said Act shall apply and the one hundred per cent export oriental unit shall be liable to pay an amount equal to the tax payable at the rates prescribed under the said Act, on such purchases in respect of which such contravention or non compliance has taken place. The amount so payable shall be deemed to be amount due for the purpose of section 8 of the said Act; (vi) Registered dealer effecting the sales to one hundred per cent export oriented unit shall produce before the assessing authority, a certificate prescribed hereunder duly filled and signed by the said export oriented unit. 12. The respondent-assessee filed the returns for the assessment year 200203 declaring the taxable turnover, subsequently he has filed revised returns declaring total taxable turnover of ₹ 66,95,14,567 and sought for exemption and he has also produced the certificate stating that for the purpose of 100 per cent export unit, they have purchased the raw materials. In the assessment, the respondent has also shown the purchase of DG sets, parts and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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