CHANANI ALLOY STEELS (PRIVATE) LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE two appeals are filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (for short the 'Act') contesting the appeal order dated 31st December, 2009 passed by the Joint Commissioner of Commercial Taxes (Appeals -3), Bangalore (for brevity as 'FAA') in case Nos. VAT/AP/119 and 120/09 -10. By the said impugned order, the FAA has upheld the reassessment orders passed under Section 39(1) and penalty imposed under Section 72(2) of the Act but however the penalty imposed under Section 70(2) of the Act has been set aside. The said reassessment orders and penalty orders dated 12th May, 2009 are passed by the Deputy Commissioner of Commercial Taxes (DM -61), D.V.O. -6, Bangalore (hereinafter referred to as 'Assessing Authority' or for short as 'AA'). Aggrieved by this impugned order of the FAA allowing the appeals in part, the appellant has preferred the present appeal. In turn the State has preferred the cross appeals praying to restore the penalty orders concluded by the AA under Section 70(2) of the Act.

(2.) FACTS in brief are stated thus. - -

(3.) ON the above grounds, the appellant assails orders of the FAA and makes prayer to allow the benefit of input tax credit on the basis of tax invoices and also prays to set aside the reassessment orders and penalty orders of the AA concluded under Sections 39(2) and 72(2) of the Act. The appellant points out that on the basis of the same tax invoices, the FAA has cancelled the penalty levied under Section 70(2) of the Act, whereas the reassessment proceedings are confirmed. Hence, prayer is made to allow the appeals.