PC:
This revision petition is directed against the order dated 25.11.2011 passed by the Karnataka Appellate Tribunal (for short ‘the Tribunal’) in STA Nos. 2080/2004 & 2081/2004, whereby the Tribunal dismissed the appeals under Section 22(1) of the Karnataka Sales Tax Act, 1957 (for short ‘the Act’). The appeals before the Tribunal, were directed against the order dated 29.6.2004 passed by the Joint Commissioner of Commercial Taxes (Appeals), Mysore Division, Mysore, (for short “the Appellate Authority”) in Appeal No. ST.AP:45/04-05 for the year 2000-2001. The Appellate Authority had dismissed the appeal filed by the appellant challenging the Assessment order dated 23.04.2004
2. The question framed by the petitioner in the revision petition reads thus:
“Whether the impugned judgment dismissing the STA No. 2080/2004, pertaining to the exemption claimed by the petitioner under the KST Act, without assigning any reason, even after holding that ‘the amount collected by the petitioner from its customers as deposit in the case does not amount to collection of tax’ is sustainable in law.”
3. The question is raised against the facts that the State Government vide Notification dated 07.10.1999, in exercise of the powers conferred by Clause (c) of sub-section (1) of Section 8-A of the Act had exempted with immediate effect, the tax payable by a dealer under this Act, on the sale of All Steel Radial Tyres for Heavy Vehicles (Trucks and Buses) for a period of one year commencing from 09.10.1999 The State Government, however, vide another Notification dated 01.01.2000 withdrew the exemption with effect from 01.01.2000 That Notification was challenged by the petitioner by way of a writ petition bearing W.P No. 802/2000 before this Court. Though the writ petition was filed, admittedly, no interim order was passed by this Court and as a result thereof, admittedly, the petitioner collected tax from its customers during the period from 01.01.2000 to 08.10.2000 Thereafter, the Government of Karnataka issued Government Order No. FD 272 CSI, 2000, Bangalore, dated 25.10.2000 and restored the exemption that was withdrawn. In other words, the exemption that was granted vide Notification dated 07.10.1999 for a period of one year i.e, from 09.10.1999 to 08.10.2000, stood restored vide Government Order dated 25.10.2000 The Government Order dated 25.10.2000 reads thus:
“After examining the matter in detail, the government are pleased to exempt the sales tax payable by M/s. Vikrant Tyres Ltd., under the Karnataka Sales Tax Act, 1957 on the sale of All Steel Radial Tyres for heavy vehicles (Trucks & Buses) for the period from 1-1-2000 to 6-10-2000 until an amendment is made to the said Act, in this regard. Eligibility for exemption from payment of tax would be available if tax is not collected on sale of All Steel Radial Tyres for heavy vehicles (Trucks & Buses) but already paid the said amount of tax would be eligible to be adjusted towards any taxes due and payable by the Company.”
(emphasis supplied)
4. In view of the Government Order, the petitioner sought adjustment of the taxes collected from the customers during the period from 01.01.2000 to 08.10.2000 towards the taxes due and payable by the Company. This claim of the petitioner has been rejected by all the three authorities below including the Tribunal.
5. Learned counsel for the petitioner, at the out set, invited our attention to paragraph-9 of the order passed by the Tribunal to contend that from 01.01.2000 to 08.10.2000 the petitioner collected taxes from the customers as deposits and that, it cannot be seated that they collected tax from the customers, and therefore, they are not eligible to seek its adjustment towards tax due and payable by the Company. We reject the submissions advanced by learned counsel for the petitioner out right. There was no question of the petitioner collecting tax from the customers between 01.01.2000 and 08.10.2000 as deposit. Since during this period in view of withdrawal of the exemption vide Notification dated 01.01.2000, the customers were liable to pay tax and it was rightly collected by the petitioner and deposited with the Department. That appears to be the reason why in the Government Order dated 25.10.2000 it is stated that eligibility for exemption from payment of tax would be available if the tax is “not collected” on sale of All Steel Radial Tyres for heavy vehicles (Trucks & Buses). Admittedly, in our case, the tax was collected by the petitioner and it was deposited with the Department, and therefore, they cannot seek any benefit whatsoever of the Government Order dated 25.10.2000 The authorities below have considered and appreciated the contentions urged on behalf of the petitioner in proper perspective and we do not find any reason to interfere with the same in the instant revision petition.
6. We may observe that apart from the submission as referred to herein above, learned counsel appearing for the petitioner did not urge any other contention.