- 1 - HC-KAR NC: 2025:KHC:34220-DB STRP No. 10 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND SALES TAX REVISION PETITION NO.10/2023 BETWEEN: 1. THE STATE OF KARNATAKA REPRESENTED THROUGH THE STATE REPRESENTATIVE KARNATAKA APPELLATE TRIBUNAL M S BUILDING BENGALURU-560001. 2. THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS)-2 SHANTHINAAR, BENGALURU-560027. 3. THE COMMERCIAL TAX OFFICER (AUDIT-2.1) DVO-2 KORAMANGALA BENGALURU-560047. PRESENTLY AT 642, PIONEER PLAZA, RAJARAJESHWARI NAGARA BENGALURU-560098. …PETITIONERS (BY SRI. ADITYA VIKRAM BHAT, AGA) AND: M/S. PACE POWER SYSTEMS (P) LTD., PLOT NO.V -12, I AND II FLOOR INDUSTRIAL ESTATE, KUMBALAGODU, BENGALURU-MYSURU HIGHWAY Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:34220-DB STRP No. 10 of 2023 BANGALORE-560074, REP. BY ITS SR.MANAGER FINANCE SRI. G RAMESH. …RESPONDENT (BY SRI. SURENDRAN THUMBOOCHETTY, ADV.) THIS STRP IS FILED UNDER SEC.65(1) OF THE KARNATAKA VALUE ADDED TAX ACT, 2003, AGAINST THE JUDGMENT DATED 18.01.2022 PASSED IN STA NO.319/2018 ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL AT BANGALORE, ALLOWING THE APPEAL AND FILED AGAINST THE ORDER DATED 31.05.2018 PASSED IN VAT.AP.NOS.267 TO 272/13-14 ON THE FILE OF THE JOINT COMMISSIONER OF COMMERCIAL TAXES (APPEALS -2), BANGALORE. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR. JUSTICE K. V. ARAVIND ORAL ORDER (PER: HON'BLE MR. JUSTICE S.G.PANDIT) The State is before this Court in this petition under Section 65(1) of the Karnataka Value Added Tax Act, 2003 (for short, ‘2003 Act’) raising the following substantial questions of law and prayed to set aside the order dated 18.01.2022 in STA.No.319/2018 passed by the Karnataka Appellate Tribunal at Bengluru (for short, ‘the Tribunal’). “1. Whether the impugned order of the Tribunal is correct, particularly, the order is passed without taking into account the factual - 3 - HC-KAR NC: 2025:KHC:34220-DB STRP No. 10 of 2023 aspects unearth during the course of the investigation and ignoring the relevant material and relying on the irrelevant aspects thereby leading to perversity of finding of facts? 2. Whether the Tribunal was right under the facts and circumstances of the case by holding that the respondent-dealer has discharged the burden under Section 70 of the KVAT Act?” 2. The order of the Tribunal is a remand order. The operative portion of the said order reads as follows: “The appeal in STA No.319/2018 is allowed. The matter is remanded back to FAA to consider the production of relevant documents for the claim of input tax in respect of M/s. Royal Enterprises in the line of observation made in the FAA order dated 31.05.2018. The Registrar of the Tribunal is directed to comply with regulation 53(b) of Chapter-IX of Karnataka Appellate Tribunal Regulations 1979, by communicating this order to the persons mentioned therein. - 4 - HC-KAR NC: 2025:KHC:34220-DB STRP No. 10 of 2023 The office is directed to send back the records of the lower authorities immediately.” 3. Heard learned Additional Government Advocate Sri.Aditya Vikram Bhat for appellants/State and learned counsel Sri.Surendran Thumboochetty for respondent/assessee. Perused the petition papers. 4. Learned counsel for the respondent files memo dated 25.02.2025 enclosing the order passed by the Joint Commissioner of Commercial Taxes (Appeals) – 2 under Section 62 (6) of 2003 Act as well as order dated 26.05.2022 giving effect to the order dated 30.04.2022. 5. In view of the fact that in pursuance to remand order under challenge, the Joint Commissioner of Commercial Taxes (Appeals) -2, Bengaluru has passed order under Section 62(6) of 2003 Act, which is given effect to under order dated 26.05.2022, the questions raised in the present revision petition would no more survive for consideration. It is open for the State to avail - 5 - HC-KAR NC: 2025:KHC:34220-DB STRP No. 10 of 2023 the remedy available under law. All contentions of the parties are left open. 6. With the above observations, the petition stands disposed of. Sd/- (S.G.PANDIT) JUDGE Sd/- (K. V. ARAVIND) JUDGE NC CT:bms List No.: 1 Sl No.: 24