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Judgment
K. Sreedhar Rao, J.—The appellant/assessee does the sale of food and beverages in the flights. The assessee had sought a clarification from the Authority for Clarification and Advance Rulings (for short, ''ACAR'') under the Karnataka Value Added Tax Act, 2003 and Central Sales Tax Act, 1956 regarding liability on the tax in such items. The ACAR has given an opinion that the said sales are not taxable under the KVAT and CST Acts. The Commissioner of Commercial Taxes in exercising the revisional power has found that the opinion of the ACAR is incorrect and remanded the matter by directing the AO to consider the issue in accordance with law. The assessee aggrieved by the said order passed in the revision has filed this appeal. On hearing both sides, we find that the opinion expressed by the ACAR would be binding on the AO. The liability to tax would depend upon the facts and circumstances. The AO has not considered the facts and circumstances in detail. Therefore, it is just and proper that the AO to consider the facts and circumstances and pass necessary assessment order in respect of the assessee in question. Accordingly, the order of remand is upheld.
The appeal is allowed accordingly.
The AO need not be influenced by the observations made by the Revisional Authority and dispose off the case in accordance with law.