Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Karnataka Value Added Tax (Act). 2003 - ss. 5 2005 17 Karnataka Value Added Tax Rules |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Karnataka Value Added Tax (Act). 2003 - ss. 5, 17 -Karnataka Value Added Tax Rules, 2005 - 1: 13 { - Partial rebate ofinput tax u/s.17 of KVAT Act -Applicability of -Assessee purchases.. oiled sunflower cake a:~ an input, extracts oil out of it and then oilis sold in the market ~.However, when sunflower oil is extracted,by-product in the form of de-oiled sunflower oil cake· also becomesavailable -Assessee also sells de-oiled cake - De-oiled cake is anexempt good and, therefore, it does not suffer any VAT- s.17(1)relates to those contingencies where the Jina/products are morethan one and output tax is payable on the sale of one such finalproduct but other final product is exempted from payment of thesaid output tax - Keeping in view s.17(1), appellant-State took viewthat the assessee would be entitled to only partial rebate of inputtax uls.17 of the Act on de-oiled cake because of the reason thatthough output tax is paid on sunflower oil, it is not paid on the saleof de-oiled cake - However, asses.see contended that s.17 of theAct would not be ·applicable - High Court accepted plea of asses.seeand gave full input tax deduction - On appeal, held: The view takenby the High Court is e1•erroneous - Plai~ language of s.17(1) afloH;spartial rebate on the 'sales' of taxable goods and goods exemptuls.5 - s.17 of the Act gets attracted in the instant case, as De-piledc(lke is a saleable commodity which i,~ actually sold by the respondent· assessee - De-oiled cake fits into the definition of 'goods' and thiscommodity is exempt from payment of i:my VAT uls.5 of the Act -Secondly, High Court has not taken note of t.131 (3) of the Rules,which is applied in cases where input tax relating to both sale andtaxable goods and exemption goods is known and in that situation,under this sub-rule formula is given to work out the partial deduction- Thirdly, WHEN literal interpretation to s.17 is given, the.case of'asses.see would get covered thereby, however; High Court resorted o /he purpose consolidation lo achieve /he object, which waserroneous - Fourthly, the entire scheme of the KVAT Act is to be· considered and s.17 to be applied in that con/ext - If Legislaturehas decided to give partial rebate of input tax render thecircumstances mentioned in that provision, that has to be strictlyapplied. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2017 INSC 983 |
Petitioner | The State Of Karnataka |
Respondent | M/s. M. K. Agro Tech. Pvt. Ltd. |
SCR | [2017] 12 S.C.R. 1007 |
Judgement Date | 2017-09-22 |
Case Number | 15049- 15069 |
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