M/S Fortuna Projects vs. Deputy Commissioner Of
Held
The Court held that the amendment was discriminatory and unsustainable as it encouraged purchases from outside the state, contrary to its stated objective. Therefore, Section 15(5)(e) of the KVAT Act was declared ultra vires the Constitution.
Facts
The case concerns an amendment to the Karnataka Value Added Tax (KVAT) Act, Section 15(5)(e), which imposed tax on purchases from unregistered dealers for those opting for the composition scheme. Assessees argued this discriminated against those purchasing within the state compared to those purchasing outside.
Key Issues
The primary issue was whether the amendment to Section 15(5)(e) of the KVAT Act violated Article 14 of the Constitution by creating an arbitrary classification and discrimination between dealers.
Sections Cited
Section 15(5)(e), Section 3(2)
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Heard together (3 matters)
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W.A. No. 2605/2009 C/W W.A. Nos 2695/2009,3190/2009, 5184/2009, 333/2010, 543/2010, 558/2010, 1756/2010,31268/2013,
W.P. No.12323/2009
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER 2023 PRESENT THE HON’BLE MR. JUSTICE P.S. DINESH KUMAR AND THE HON’BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO.2605 OF 2009 C/W WRIT APPEAL NO.2695 OF 2009 WRIT APPEAL NO.3190 OF 2009 WRIT APPEAL NO.5184 OF 2009 WRIT APPEAL NO.333 OF 2010 WRIT APPEAL NO.543 OF 2010 WRIT APPEAL NO.558 OF 2010 WRIT APPEAL NO.1756 OF 2010 WRIT APPEAL NO.31268 OF 2013 WRIT PETITION NO.12323 of 2009 (T-RES)
IN W.A. NO.2605 OF 2009
BETWEEN:
M/S. REDDY VEERANNA CONSTRUCTIONS PVT. LTD CLASSIC COURT, II FLOOR 9/1, RICHMOND ROAD BANGALORE-560 025 (BY ITS DIRECTOR A. VENKATARAMANA AGED 49 YEARS)
…APPELLANT
(BY SHRI. T.
The judgment continues below.
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