T V SUNDARAM IYENGAR AND SONS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Petitioner is before this Court assailing the order of the 2nd Respondent at Annexure-L passed under Section 39 of the Karnataka Value Added Tax Act, 2003 (for short 'KVAT' Act).

(2.) The main grievance of the Petitioner is the denial of deduction on the discounts by the 2nd Respondent only on the premise that the discounts had been granted through credit notes raised subsequent to the tax invoices which would result in the reduction of turnover/price and constitute tax liability. According to the Petitioner, the decision of the 2nd Respondent is arbitrary, illegal and ultra vires as per Section 2(36) 4, and 30 of KVAT Act, 2003 r/w Rule 31 of the KVAT Rules and Article 14, 19(1)(g), 265 and Entry 54 of list II of the VII Schedule to the Constitution of India. The Assessing Officer without extending the discount on the sales, treating it is a post discount, has passed the impugned order, on which aspect, the Division Bench of this Court has already dealt with.

(3.) Learned Senior Counsel appearing for the Petitioner submitted that the approach of the Assessment Officer is contrary to statute since the operation of the order is stayed by the Division Bench of this Court in W.A. No. 467/10 and also in STRP No. 117/08.