9911796707
TMI Blog2023 (6) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present case, assessee has availed the benefit for 100% sales tax exemption in the year 2003. The KAT has rightly recorded that the vide Notification dated July 17, 2007, the State Government have clearly stated that rescinding of the Notification dated November 12, 1999 shall not be applicable to the dealers who have made investment in establishment in a new tourism units and the incentives offered and committed by the Government shall not get affected. Revenue has placed reliance on Hotel Madhuvan Case [ 2008 (12) TMI 703 - KARNATAKA HIGH COURT ], where this Court was examining whether a tourism unit is an industrial unit or not - In the instant case, the issue involved is whether petitioner is entitled for benefit of exemption. Admittedly, assessee has obtained exemption certificate dated March 25, 2003 for a period of seven years with effect from February 27, 2003. Though the State Government issued a Notification on January 07, 2000 discontinuing sales tax based incentives, the same has been clarified vide Notification dated July 17, 2007 to the effect that the notification dated January 07, 2000 shall not affect the dealers who have made investment in establishi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 001. It is engaged in providing boarding and lodging services to its customers. The Government of Karnataka issued a notification [Notification No. FD 70 CSL 97 (1)] dated November 12, 1999 under Section 8-A(1) of the Karnataka Sales Act, 1957 [KST Act] exempting sale of food articles and beverages by new tourism units. Assessee has obtained Exemption Certificate dated March 25th, 2003 from the Commissioner of Tourism, Govt. of Karnataka, Bengaluru. 4. Assessee was earlier registered with the Commercial Tax Department under the provisions of the KST Act and availed tax benefit for F.Ys [Financial Year] . 2003-04 and 2004-05. Subsequently assessee got registered under the KVAT Act and availed the benefit of exemption of tax for a period of five years during the KVAT regime. 5. The DCCT [Deputy Commissioner of Commercial Taxes] cum AO [Assessing Officer] , Challakere issued a proposition notice [Dated March 22, 2010] on the ground that after the enactment of the KVAT Act, the exemption granted under the KST Act would apply only to new industrial units and not tourism units. The AO passed a re-assessment order dated April 30, 2011 denying the exemption on the payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 11. We have carefully considered rival contentions and perused the records. 12. Undisputed facts of the case are, assessee is a tourism hotel unit and commenced its business in the year 2001. It was earlier registered under the KST Act and later under the KVAT Act. Assessee has obtained Exemption Certificate from the Commissioner of Tourism, Government of Karnataka. 13. Revenue s case is, in the absence of any notification issued under the provisions of the KVAT, assessee is not entitled for any exemption. 14. A perusal of Exemption Certificate dated March 25, 2003 makes it is clear that assessee is a registered Tourism Industry and is eligible for 100% tax exemption for a period of 7 years. The relevant portion of the Exemption Certificate reads as follows: The unit is located at Chitradurga. E category as per G.O. No. ITY 137 TIM 96 Bangalore Dated 4-7-1997 and eligible for 100% Tax Exemption for a period 7 (Seven) years from 27-02-2003. That is the date of going into business as evidence by First Sale Invoice bearing No. 1, Dated 27-2-2003. (Emphasis supplied) 15. We may record that Government Order No. FD 303 CSL 99, dated January 07, 2000, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government Order No. FD 303 CSL 99, Bangalore, dated: 07.01.2000. Therefore, it is clear that as per the above said GO dated: 07.01.2000 the incentives which has been already offered and committed by the Government for New Tourism Units will not get affected until the period of eligibility of such incentives are completed. As per the exemption certificate dated 25-3-2003 given to the appellant it is clearly mentioned that appellant is registered Tourism Industry and it is registered with Government of Karnataka vide No. DTR/HTL/2000 2001-6162 dated 17/31/3/2001 as a Tourism unit and it is not registered as tourism Industry. (Emphasis Supplied) 17. On a careful perusal of the above, it is clear that assessee has availed the benefit for 100% sales tax exemption in the year 2003. The KAT has rightly recorded that the vide Notification dated July 17, 2007, the State Government have clearly stated that rescinding of the Notification dated November 12, 1999 shall not be applicable to the dealers who have made investment in establishment in a new tourism units and the incentives offered and committed by the Government shall not get affected. 18. In support of Revenue s cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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