Karnataka HC dismisses Writ Petition challenging Constitutional Validity of VAT Notification by Authorities to Track Movement of Goods to Fix Tax Liability [Read Order]

The Karnataka High Court dismissed a writ petition challenging constitutional validity of Value Added Tax (VAT ) Notification by Authorities to track movement of goods to fix tax liability.

The petitioner, M/S. Meenaxi Building Solutions Pvt Ltd, is a transporter and dealer of cement at Bangaluru and was transporting cement purchased by one M/s. ACC Limited, Ballari from Andhra Pradesh to Karnataka. As the vehicle carrying the cement did not have the necessary documents as stipulated in notification No.DCOM(I&C)/AC/CR.22/10-11) dated 24.05.2010, notices were issued under Section 15(12) of the Karnataka Value Added Tax, 2003. Aggrieved by the same the present writ petition is filed.

The petitioner is challenging the notification bearing No.DCOM(I&C)/AC/CR.22/10-11) dated 24.05.2010 to the writ petition as violative of the provisions of the Act and the Constitution of India. Consequently the petitioner is praying for setting aside the notices issued against the petitioner.

Section 53(2-A) of the Karnataka Value Added Tax, 2003 empowers the Commissioner to prescribe the details to be entered in the website of the Department in respect of the goods being carried and a proof for entering the same to be carried by the transporter.

The petitioner in the course of his arguments, was not in a position to show as to how the said provision of the notification is in violation of the provisions of the Karnataka Value Added Tax, 2003 or the Constitution of India. The said details are specified by the authorities in order to track the movement of goods in the manner known to law, which is essential to determine the tax liability under the Karnataka Value Added Tax, 2003.

The Court of Justice MI Arun, observed that “I do not see any reason, as to why the impugned notification is to be struck down. The notices at Annexure – B and C to the writ petition are issued in pursuance of the impugned notification and they do not violate the said notification. Hence, the said notices are also upheld.”

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