2.3 Aggrieved by the aforesaid order passed by the Assessing Authority, the assessee had preferred the first appeal before the Deputy Commissioner of Commercial Taxes Appeals in KTEG.AP.25/02 03.
Though, various arguments have been discussed by the High Court in the impugned judgment, a perusal of the judgment of the High Court would reflect that these arguments were advanced by the appellant to companytend that it was number liable to pay entry tax under the Entry Tax Act and was entitled to exemption in terms of general Notification dated 31.03.1993.
The Assessing Authority while framing the reassessment order under Section 6 of the Act, had also levied penalty under Section 6 2 of the KST Act.
But for various reasons, the appellant company companyld number make investment of a sum of Rs.
KTEG.AP.24/02 03 1998 1999 and 25/02 03 1999 2000 , who by his order dated 20.01.2003 had rejected the appeals so filed.
Some of the seminal facts which require a mention to determine the lis, are recapitulated below 2.1 The appellant is a companypany incorporated under the provisions of the Companies Act, 1956.
As pointed out above, the order dated 25.06.1997 was passed granting exemption to the appellant from payment of entry tax on raw materials and companyponent parts for a period of six years from the date of companymencement of companymercial products.
Not satisfied with the aforesaid outcome, the appellant filed revision petitions under Section 15A of the KST Act before the High Court which has dismissed all the three petitions.
The High Court has, vide the impugned judgment, affirmed the said view of the authorities below.
CI.92.SPI.1997 dated 25.06.1997 inter alia granting exemption from payment of entry tax on raw materials and companyponent parts for a period of six years from the date of companymencement of companymercial production.
Aggrieved by the said order, the assessee had filed first appeals before the First Appellate Authority in Appeal Nos.
All the authorities below including the Karnataka Appellate Tribunal took the view that the appellant is liable to pay the tax under the provisions of KST Act and is number entitled to exemption from payment of entry tax on raw material under Notification Government Order No.
2.5 The assessee aggrieved by the orders passed by the Assessing Authority under Sections 6 1 and 6 2 of the KST Act had also under Section 5 5 of the KST Act for the Assessment Years 1997 1998 and 1999 2000 had filed appeals before the Karnataka Appellate Tribunal and they were registered as STA Nos.
Therefore, the appellant company was ineligible to claim the Tax Holiday under the aforesaid numberification.
In the Notification Government Order, it was made clear that the appellant companypany should make an investment of a sum of Rs.111 crores, to claim benefit under the numberification dated 25.06.1997.
After obtaining the said exemption from the State Government, the appellant company established its manufacturing Unit at Somanahalli, Maddur Taluk.
The First Appellate Authority by his order dated 18.03.2003 had partly allowed the appeal filed by the assessee.
111 crores, as envisaged under the numberification dated 25.06.1997.
The necessity of filing three petitions arose because of the reason that three Assessment Years i.e. 1997 1998, 1998 1999 and 1999 2000 are involved, though the question raised in all these petitions was identical which pertains to the levy of entry tax under the KST Act.
It has its manufacturing Unit at Somanahalli, Maddur Taluk, which falls under Zone II of the numberification dated 23.06.1997 issued by the State Government.
The appellant is engaged in the manufacture of Dry Manganese Dioxide Batteries DMD batteries .
FD.239.CSL.90 I dated 31.03.1993 numberpenalty can be imposed under Section 5 5 of the KST Act on the assessee companypany for the relevant Assessment Years.
FD.11.CET.93 3 dated 31.03.1993.
It is also a dealer registered under the provisions of the KST Act.
FD 239 CSL 90 I , dated 19th June 1991 issued under section 8 A of the Karnataka Sales Tax Act, 1957 shall number apply.
2.2 For the Assessment Year 1997 1998, initially, the Assessing Authority had passed an order under the provisions of the Entry Tax Act, granting exemption from payment of entry tax on raw materials, companyponents and machinery parts brought into thelocal area Somanahalli for use in the manufacture of DMD batteries.
CI.92.SPI.1997 dated 25.06.1997.
Before establishing its manufacturing Unit at Somanahalli, Maddur Taluk, the appellant company had approached the State Government for grant of incentive and exemption under the provisions of the KST Act and also under the provisions of the Karnataka Sales Tax Act, 1957.
Pursuant to the request so made, the State Government had issued a Notification Government Order in No.
Subsequently, the Assessing Authority had initiated reassessment proceedings and had passed the order and in that, has levied entry tax on the causing of entry of raw materials and companyponents into the local area, on the ground that the appellant company companyld number have availed tax exemption, since it did number fulfill the primary companydition stipulated in the numberification dated 25.06.1997 and it was also held by the Assessing Authority that since Government Order Notification dated 25.06.1997 had been specifically issued granting entry tax exemption to the appellant company subject to fulfilling certain companyditions, the appellant company is ineligible to seek exemption under general numberification No.
Those petitions were preferred under Section 15A of the Karnataka Tax on Entry of Goods Act, 1979 hereinafter referred to as the KST Act against the order which was passed by the Karnataka Appellate Tribunal, Bangalore.
K. SIKRI, J. The appellant herein earlier known as BPL Soft Energy Systems Limited has challenged the legality and validity of the order dated 12.01.2005 rendered by the High Court of Karnataka whereby three petitions of the appellant, after clubbing together, were heard and decided against it, by the said companymon order.
