- 1 - NC: 2025:KHC:17600 WP No. 12992 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12992 OF 2025 (T-RES) BETWEEN: M/S VERACIOUS BUILDERS AND DEVELOPERS REGISTERED UNDER KVAT ACT 2003 PENT HOUSE SAINTA VISTA 1ST MAIN PAI LAYOUT, OLD MADRAS ROAD BANGALORE – 560 016. REP BY SHRI. SREENIVASULU REDDY (PROPRIETOR ) …PETITIONER (BY SRI. SATHYANARAYANA T. R, ADVOCATE) AND: 1. THE STATE OF KARNATAKA COMMERCIAL TAXES DEPARTMENT STATE REPRESENTATIVE, SALES TAX APPELLATE TRIBUNAL, MULTI STORIED BUILDING, DR. B.R.AMBEDKAR VEEDHI, BANGALORE-560 001. 2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS) -5, 2ND FLOOR, SHANTHI NAGAR, KH ROAD, BENGALURU-560 027. 3. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT) -5.9, DVO-5, 5TH FLOOR, VTK -2, RAJENDRA NAGAR, KORAMANAGALA, BENGALURU-560 047. …RESPONDENTS (BY SRI. K. HEMA KUMAR, AGA) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:17600 WP No. 12992 of 2025 THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUITON OF INDIA PRAYING TO SET ASIDE THE ORDER DATED 14.03.2025 IN STA APPEAL NO.48/2024 PASSED BY THE HONBLE KARNATAKA APPELLATE TRIBUNAL AT BENGALURU REJECT THE APPLICATION ON I.A.NO.III UNDER SECTION 63(4) OF KVAT ACT, 2003 FILED BY THE PETITIONER. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER This petition takes exception to the impugned order dated 14.03.2025 passed in STA Appeal No.48/2024 by the Karnataka Appellate Tribunal, Bengaluru insofar as it directs the petitioner to deposit 30% of the amount other than the Tax amount and for other reliefs. 2. Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record. 3. A perusal of the material on record indicates that aggrieved by the orders passed by the Joint Commissioner under Section 62(6) of the Karnataka Value Added Tax Act, 2003, (hereinafter referred to as ‘the KVAT Act’ for short) petitioner filed an appeal before the Karnataka Appellate Tribunal in which the petitioner deposited 30% of the Tax amount as required under - 3 - NC: 2025:KHC:17600 WP No. 12992 of 2025 Section 63(4) of the KVAT Act and sought stay before the Joint Commissioner. 4. Though the petitioner had deposited 30% of the Tax amount and requested for stay, Karnataka Appellate Tribunal has erroneously dismissed the appeal on the ground that the petitioner had deposited 30% of the tax amount and not deposited entire disputed amount as contemplated under Section 63(4) of KVAT Act, aggrieved by the same, the petitioner is before this Court by way of the present petition. 5. The question as to whether as per Section 63 of the KVAT Act, the petitioner is bound to deposit 30% of the Tax Amount or he has to deposit 30% of the tax amount along with interest and penalty, is no longer res integra as held by this Court in the case of Hare Krishna Enterprises Vs. State of Karnataka and Ors – W.P.No.7918/2022 dated 02.03.2023. 6. As held by this Court in the aforesaid judgment, the only requirement for the petitioner to maintain the appeal under Section 63 is to deposit 50% of the Tax amount and having regard to the word /expression “or any” under Section 63(4) of KVAT Act as against the expression “and other” under Section 62(c)(i) of the - 4 - NC: 2025:KHC:17600 WP No. 12992 of 2025 KVAT Act, there is no requirement/obligation on the petitioner for payment of any other amounts etc., when the petitioner has already deposited 30% of the tax amount along with appeal, which is mandatory for maintaining the appeal. Consequently, the impugned order passed by the Karnataka Appellate Tribunal, Bengaluru, dismissing the appeal deserves to be set aside and matter may be remitted back for reconsideration by Tribunal in accordance with law on merits. 7. In the result, I proceed to pass the following: ORDER i) The Petition is hereby allowed. ii) The impugned order dated 14.03.2025 in STA Appeal No.48/2024 passed by the Karnataka Appellate Tribunal, Bengaluru is hereby set aside. iii) It is held that the appeal filed by the petitioner by depositing 30% is maintainable and the Tribunal is directed to consider the appeal on merits and dispose of the same on merits and in accordance with law subject to the verification of deposit of 30% of the tax - 5 - NC: 2025:KHC:17600 WP No. 12992 of 2025 amount paid by the petitioner and without insisting upon payment of any additional amounts by the petitioner. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 78