ASEA BROWN BOVERI LTD. REP BY ITS ASSISTANT VICE PRESIDENT Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) This sales tax appeal under Section 24(1) of the Karnataka Sales Tax Act, 1957 (for short "the Act") is preferred against the order dated 2nd March 2010 rendered by Additional Commissioner of Commercial Tax (for short "the Second Revisional Authority") whereby, the Second Revisional Authority in exercise of the powers under Section 22-A(1) of the Act revised the order dated 30th September 2006 passed by the Joint Commissioner (for short "the First Revisional Authority") under Section 21(2) of the Act for the assessment year 2002-2003 and confirmed the proposals made earlier vide notice dated 15th June 2009.

(2.) The Deputy Commissioner of Commercial Tax (Assessment)-21, Bangalore (for short "the Assessing Authority") passed an order of assessment dated 9th June, 2005 under Section 12 (3) of the Act granting exemption in respect of the turnover pertaining to inter-State purchases of goods used in the execution of works contract. The first Revisional Authority, in exercise of the powers under Section 22(2) of the Act, initiated suomoto proceedings to revise the order of assessment dated 9th June 2005 on the ground, inter-alia that the exemption in respect of the turnover representing inter-State purchase of goods utilized in the works contract was erroneously allowed in the absence of documentary evidence. The first Revisional Authority, however, dropped the proposal to levy tax under the Act, in respect of purchase of goods from outside the State and used in execution of the works contract.

(3.) The assessee is a company incorporated under the provisions of the Companies Act, 1956 and a dealer registered under the provisions of the Act. The assessee is engaged in the manufacture and sale of electrical and electronic goods as well as in execution of works contract.