- 1 - NC: 2025:KHC:3462-DB STRP No. 18 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JANUARY, 2025 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE G BASAVARAJA SALES TAX REVISION PETITION NO. 18 OF 2023 BETWEEN: M/S THYSSEN KRUPP ELEVATORS (INDIA) PVT LTD SUMERU TOWERS, NO.74, BRIGADE ROAD, BANGALORE – 560 025. TIN NO. 29360083525. REP BY ITS GENERAL MANAGER …PETITIONER (BY SRI.HEMANTH N P.,ADVOCATE FOR SRI. DUNDAPPA RACHAPPA KAPAL GANTI.,ADVOCATE) AND: 1. STATE OF KARNATAKA, REP BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, GOVERNMENT OF KARNATAKA, VIDHANA SOUDHA, BENGALURU – 560 001. 2. THE COMMISSIONER OF COMMERCIAL TAXES, VANIJYA THERIGE BHAVAN, GANDHINAGAR, BENGALURU – 560 009. 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, (AUDIT)-1.3, DVO-1, BANGALORE, BMTC, YESHWANTHPUR, BENGALURU – 560 022. …RESPONDENTS (BY SRI.ADITYA VIKRAM BHAT.,AGA) Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:3462-DB STRP No. 18 of 2023 THIS STRP IS FILED UNDER SECTION 65(1) OF THE KARNATAKA VALUE ADDED TAX ACT, 2003 AGAINST THE ORDER DATED 23.12.2016 PASSED IN STA NO.466 TO 469/2016 ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL BENGALURU, DISMISSING THE APPEAL AND CONFIRMING THE ORDER DATED 31.03.2016 PASSED IN VAT.AP.NO.68/15-16, VAT.AP.NOS.950 TO 952/14-15, VAT.AP.NOS.953 TO 958.14-15, AND VAT AP NO.40/15-16 PASSED BY THE JOINT COMMISSIONER OF COMMERCIAL TAXES, (APPEAL)-1, SHANTHINAGAR, BENGALURU, DISMISSING THE APPEALS FILED AGAINST RECTIFICATION ORDER DATED 04.06.2015,22.09.2014 AND 20.04.2015 PASSED BY THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-1.2, BENGALURU, FOR THE TAX PERIODS OF OCTOBER 2006 TO MARCH 2007. THIS STRP, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT and HON'BLE MR JUSTICE G BASAVARAJA ORAL ORDER (PER: HON'BLE MR JUSTICE KRISHNA S DIXIT) This Petition by the Assessee calls in question the order dated 23.12.2022 whereby the Karnataka Appellate Tribunal, Bengaluru, having confirmed First Appellate Authority’s orders dated 31.03.2016, has negatived Assessee’s STA NOs.466 to 469/2016. - 3 - NC: 2025:KHC:3462-DB STRP No. 18 of 2023 2. This Revision Petition filed under Section 65(1) of the Karnataka Value Added Tax Act, 2003, has framed the following questions of law: “ 1. Whether on facts and in the circumstances of the case, the Hon’ble Tribunal was right in upholding the restriction of 25% on labour charges, by the Assessing Authority, which is not involved in the sale of the goods, under the KVAT Act, 2003? 2. Whether on facts and in the circumstances of the case, the Hon’ble Tribunal was right in upholding the action of the Assessing Authority to levy of tax on labour charges under the KVAT Act?” 3. Having heard the matter on merits, we noticed that the deduction component from the Works Contract in question has not been duly ascertained by following the provisions of Rule 3(2) (l) & (m) of Karnataka Value Added Tax Rules, 2005, which exercise is a pre-condition for levying tax. In fact, there is no much dispute about this at the Bar. In the above circumstances, this Petition having been favoured, matter is remitted to the portals of Assessing Authority for deciding the matter afresh in accordance with law. All contentions of the parties are kept open. - 4 - NC: 2025:KHC:3462-DB STRP No. 18 of 2023 It hardly needs to be stated that the de nova exercise arising because of the remand shall be undertaken after giving opportunity of hearing to the Assessee. Costs made easy. Sd/- (KRISHNA S DIXIT) JUDGE Sd/- (G BASAVARAJA) JUDGE Bsv List No.: 1 Sl No.: 31