9911796707
TMI Blog2016 (10) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... as found that the respondent - unit is eligible for refund of tax paid on the purchase of inputs and for the purpose of verification of the items of which the refund is to be granted, the matter is remanded to the assessing authority. 3. We have heard Mr. T.K.Vedamurthy, learned HCGP appearing for the petitioner and Mr. R. Dakshina Murthy, learned counsel appearing for respondent. 4. The contention raised on behalf of the petitioner was that as per Rule 130-A of the Karnataka Value Added Tax Rules, 2005 (for short 'Rules'), the respondent would be entitled to input tax credit or refund of tax paid only on items which are required for the establishment of the plant and for its incidental purpose. As per the submission of the learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... special economic zone; (b) If such inputs are purchased for the purpose of setting up, operation or maintenance of an unit in the processing area of a special economic zone; (c) If such inputs are purchased for use in manufacture, trading, production, processing, assembling, repairing, reconditioning, re- engineering or packing in an unit located in the processing area of any special economic zone. (2) The refund or deduction of tax under this rule shall be allowed on the goods actually used in the processing area of a special economic zone for the authorized operations as specified and it.-- (a) xxxx (b) xxxx (3) The registered dealer claiming refund or deduction under this rule shall, claim refund or seek adjustment of tax pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s being exported. This activity of the appellant unit is classified as Software Development/ Software Application Management. In view of the same, the appellant unit can also be considered as an unit engaged in processing activity located in the processing area of the Special Economic Zone and thus satisfies clause (c) of sub-rule (1) of Rule 130-A. In this context, it is necessary to rely on the decision on the Hon'ble High Court of Karnataka reported in [2013] 63 VST 168 (kar,) (DB) in Mportal India Wireless Solutions Private Limited vs. Commissioner of Service Tax, Bangalore, wherein it has been decided by this lordships to the effect that refund of accumulated Cenvat credit cannot be denied on the ground that export of software is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contemplated different scenarios while framing the Rule 130-A to extend the benefit of refund of tax paid on inputs for a Developer or an Operator or for maintenance or Special Economic Zone area and also for the units located in the SEZ area for setting up or operation or maintenance. Therefore, the appellant unit satisfies the conditions prescribed under Rule 130-A(1)(b) of KVAT Rules and thereby satisfies the said Rule." 8. In our view, the Tribunal in the above referred reasoning has taken note of only clause (b) of sub-rule (1) of Rule 130-A namely that; setting up, operation or maintenance. Apart from the said aspect as already reproduced earlier clause (c) of Rule 130-A (1) speaks for all such inputs which are purchased for use in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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