M/S Sri Giri Bar And Restaurant vs. The State Of Karnataka
Held
The Court held that the assessee was not eligible for input tax credit as they had not paid any input tax. It was also held that Rule 3(2)(f) of the KVAT Rules was not applicable as the liquor was not exempted under Section 5 of the KVAT Act in the hands of the assessee.
Facts
The assessee, a bar and restaurant owner, was levied tax on liquor sales under the KVAT Act. The assessee claimed that tax should only be on value addition and sought input tax credit, arguing that the supplier was exempted from tax. The authorities denied the input tax credit and levied tax on the entire turnover.
Key Issues
Whether the assessee is entitled to input tax credit and whether tax should be levied on value addition or entire turnover, considering the exemption of the supplier.
Sections Cited
Section 39, Section 52, Section 10, Section 5, Rule 3(2)(f)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KARNATAKA, BENGALURU
DATED THIS THE 2ND DAY OF SEPTEMBER 2021
PRESENT
THE HON’BLE MRS.JUSTICE S.SUJATHA
AND THE HON’BLE MR. JUSTICE RAVI V. HOSMANI
S.T.R.P.No.2/2020
BETWEEN:
M/S. SRI GIRI BAR & RESTAURANT No.20, HMT MAIN ROAD SBM COLONY, MATHIKERE BENGALURU-560054. [REP. BY ITS PROPRIETOR SRI M.C.SRINIVASAIAH].
…PETITIONER
(BY SRI G.SHIVADASS, SENIOR COUNSEL ALONG WITH SRI ATUL K. ALUR, ADV..)
AND:
THE STATE OF KARNATAKA REPRESENTED BY THE COMMISSIONER OF COMMERCIAL TAXES VTK-1, KALIDAS ROAD GANDHI NAGAR BENGALURU-560009. …RESPONDENT
(BY SRI K.HEMA KUMAR, AGA.)
THIS STRP FILED UNDER SECTION 65(1) OF THE KARNATAKA VALUE ADDED TAX ACT, 2003 AGAINST THE JUDGMENT DATED 29.05.2019 PASSED IN STA.NO.275/2017 ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL AT BENGALURU, DISMISSING THE APPEAL AND UPHOLDING THE ORDER DATED 10.04.2017 PASSED IN KVAT AP No.6/16-17 ON THE FILE OF THE JOINT COMMISSIONER OF COMMERCIAL TAXES [APPEALS-6] – BANGALORE, DISMISSING THE APPEAL AND UPHOLDING THE ORDER DATED 23.06.2016 ON THE FILE OF THE ASSISTANT COMMISSIONER OF COMMERCIAL T
The judgment continues below.
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