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TMI Blog2019 (4) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... for other units, under Rule 47[1] of the Rules. Commissioner rightly denied the request to accord ex-post facto permission to hold both separate VAT Composition registrations - Decided against the assessee. - Writ Petition No.24939/2018 (T-RES) - - - Dated:- 1-10-2018 - Dr. Justice Vineet Kothari For the Petitioner : Sri. Rabinathan G., Advocate For the Respondents : Sri Vikram Huilgol, HCGP ORDER For the Petitioner : Mr. Rabinathan G.,, Adv. For the Respondents : Mr. Vikram Huilgol, HCGP. 1.This petition has been filed by the Assessee in this Court on 8.6.2018 with the following prayer: [i] issue a writ of certiorari or a declaration inthe nature of writ of certiorari quashing in entirety the Endorse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such conditions as may be prescribed. The conditions prescribed in Rule 47[1] are as under: i) The tax payable under any provisions of the Act by each of such branch together shall not be less than the tax that would have been payable as if such branch was not treated as a separate unit. ii) Every branch is required to get registration irrespective of its turnover specified under section 22 i.e., irrespective of the threshold limit for registration. iii)Every branch shall be assessed irrespective of the turnover specified under section 22. 3) Therefore, the conditions of Rule 47[1] which have been prescribed as per section 38[6] of the KVAT Act need to be adhered to, in order to avail the benefit under section 38[6] of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. 8) The Division Bench of the Hon ble High Courtof Karnataka, in its Judgment dated 15.07.2010 [STA No.28/2009], in the case of M/s. Aswathi Inns Private Limited has interpreted the provision under Rule 47[1], where the principal unit was having a bar and restaurant [selling liquor and food articles] holding VAT registration and paying taxes at regular rates as per the Act. Subsequently separate COT registration was granted for the new food outlet, where only food was to be supplied and there was no supply of liquor, allowing to pay tax at a lower rate under the Composite Scheme. Aggrieved by the move of the Department rejecting the benefits granted under the composition scheme by virtue of holding COT registration for the new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained one more registration for the same corporate entity under VAT scheme for dealing in liquor and food articles vide TIN 29970804336 with effect from 10.06.2008 from Local VAT Office-020, Bengaluru without disclosing the existence of the earlier registration. 10) From the above, it is evident that there is violation of Rule 47[1] of the KVAT Rules as the tax paid in the parent unit with TIN 29390390271 as a separate unit is lesser than the tax that would have been paid without it being treated as a separate unit. The interpretation of Rule 47[1][i] made in M/s. Aswathi Inns Private Limited case is thus squarely applicable to the facts of this case also. 11) Therefore, in this case, there is violation of the Rule 47[1][i] as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancy Pvt. Ltd., vs. State of Karnataka and Others], had upheld the contention of the Assessee about the right to secure separate registration for different units and directed the Commissioner to pass fresh orders in accordance with law. Paragraphs 7 and 8 of the said Order of this Court dated 10.02.2017 are quoted below for ready reference: 7. The present writ petitions are therefore liable to be allowed. The same are accordingly allowed and the impugned endorsement issued by the learned Commissioner, Annexure-H dated 27/03/2015 is quashed. The consequential orders passed by the Assessing Authority under Section 39[1] of the KVAT Act, 2003, Annexure-J dated 30/04/2015 and Annexure K, L, M, N and P, all dated 02/05/2015 for the tax peri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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