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TMI Blog2017 (12) TMI 1015X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are bound by the terms of the Circulars issued by the Commissioner of Commercial Taxes which are nothing but administrative guidelines for their sub-ordinate Assessing Authorities and the learned Commissioner of Commercial Taxes has such powers under the KVAT Act, 2003. Validity of Section 15 of the KVAT Act, 2003 - Held that: - this Court cannot reconsider the issue de novo merely because some arguments are sought to be raised which as contended by the learned counsel for the petitioners, was not raised earlier. They are free to raise any such questions relating to validity of the said provisions before the Division Bench of this Court where the appeal against the said judgment of the learned Single judge namely Writ Appeal No.1654/2009 is pending in the same case. This Court does not find any reason to allow the assessees petitioners to by-pass the regular appellate remedies available to them under the KVAT Act, 2003 before the Appellate Forums and if such petitions are directed only against the Show Cause Notices issued by the Assessing Authorities, the assessees may first show cause before the concerned Authorities themselves. The writ petitions are considered to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying upon Rule 135 of the Karnataka Value Added Tax Rules, 2005 (hereinafter referred to as the KVAT Rules, 2005 for short), which further provides for certain conditions to be satisfied by a Dealer opting to pay tax by way of Composition under Section 15 of the KVAT Act, 2003, the learned counsels have urged that only the goods held in stock which are brought from outside the State hits such assessees or if a Dealer is selling liquor or he is a dealer selling goods in the course of inter-State Trade or Commerce or in the course of export outside the territory of India and therefore Rule 135 of the KVAT Rules, 2005 clearly indicates that the purchase of capital goods from outside the State does not debar the assessees from availing the benefit of Composition of Tax under Section 15 of the KVAT Act, 2003. 6. They have also sought to urge certain points with regard to validity of Section 15 of the KVAT Act, 2003. However, they fairly submitted that the question of validity of Section 15 of the KVAT Act, 2003 has already been examined and upheld by a learned Single Judge of this Court in the case of New Taj Mahal Caf (P.) Ltd. v. State of Karnataka [2009] 66 Kar. L.J. 324 again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the petitioners and the learned Additional Government Advocate for the Revenue and perused the record. 13. This Court is of the considered opinion that novelty of arguments or a different shade of arguments or a set of arguments now sought to be raised again to re-agitate the issue of validity of Section 15 of the KVAT Act, 2003 is no ground to entitle the petitioners assessees to maintain these writ petitions on that ground. 14. A learned Single Judge of this Court has comprehensively dealt with the arguments regarding the validity of the said provision of the KVAT Act, 2003 by a detailed judgment rendered on 26/03/2009 in the case of New Taj Mahal Caf (P.) Ltd. (supra). The learned Single Judge has observed that Section 15 of the KVAT Act, 2003 is to provide some facility, i.e. simplifying the procedural compliances required on the part of the assessees and the identification of such assessees or dealers having been indicated in the provisions of Section 15 of the KVAT Act, 2003 which is meant for small time dealers and not big businessmen, dealers who are executing works contracts or dealers who are Hoteliers, Restaurateurs, caterers or dealers running sweetmeat stalls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the two extending the facility of composition for facilitating such dealers who may face hardship if are required to strictly comply with the procedural requirements of maintaining the accounts and filing returns and at the same time the State not willing to forego its revenue appreciably, definitely is an object and if this object is to be achieved i.e., classification of dealers amongst the identified dealers as to who should be provided the facility and who should not be to achieve this object of extending the facility and not diminish the revenue to the State, it can be said that classification in such a manner has a nexus to the object. 47. Though the statement filed by the State in the counters and additional counters is with reference to one single petitioner and is not necessarily an example for generalizing the same, it is more symptomatic of the kind of transactions which possibly the persons like the petitioners, caterers/restaurateurs have been doing and to demonstrate the consequences of such persons having purchases outside the state and the possible results on revenue. 48. The table definitely indicates that when dealers identified as hoteliers, restaurateu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present situation and it is therefore to be declared that the provision does not infringe Article 14 of the Constitution of India as being discriminatory. 16. That as far as the question of the validity of the said provision of the KVAT Act, 2003 is concerned, this Court cannot reconsider the issue de novo merely because some arguments are sought to be raised which as contended by the learned counsel for the petitioners, was not raised earlier. They are free to raise any such questions relating to validity of the said provisions before the Division Bench of this Court where the appeal against the said judgment of the learned Single judge namely Writ Appeal No.1654/2009 is pending in the same case. 17. Unnecessarily multiplying the litigation before this Court on the same ground or even a shade of different ground cannot be appreciated. Since the Division Bench of this Court is seized of the matter, it is left free for the assessees petitioners and their learned counsels to raise the said arguments before the Division Bench of this Court. 18. As far as the question of the Circulars issued by the Respondent Commissioner of Commercial Taxes is concerned, the two Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mature and do not deserve to be entertained by this Court at this stage. 24. The petitioners assessees are therefore relegated back before the Departmental Authorities at the stage from which whey have approached this Court and they will be free to raise their contentions before the Departmental Authorities and such Departmental Authorities will be free to pass orders in accordance with law. 25. As already made clear above, the question of validity of Section 15 of the KVAT Act, 2003 itself is already open and subject matter of consideration by the Division Bench of this Court, where both the parties are of course free to raise their respective contentions. 26. Therefore, with these observations, the present writ petitions are disposed of. Interim orders stand vacated. 27. If the regular Appeals are filed by the assessees petitioners within 30 days from today under the provisions of the KVAT Act, 2003, they shall be entertained by the respective Appellate Authorities, without raising objection about the limitation, however the assessees petitioners will have to comply with the other conditions for maintaining such Appeals in accordance with the provisions of the KVAT Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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