The Commercial Tax Officer, Enforcement 15 and Others vs Namratha Agencies

Dilip B. Bhosale, J.—Heard learned Counsel for the appellants. These writ appeals are directed against the order passed by the learned Single Judge dated 15-9-2011 in W.P. Nos. 12474 to 12509 of 2011 (Namratha Agencies, Bangalore v. The Commercial Tax Officer, Enforcement-15, South Zone, Bangalore and Others 2013 (77) Kar. L.J. 471 (HC)). The order passed by the learned Single Judge reads thus:

By the impugned orders, the Commercial Tax Officer directed the petitioner to pay tax at the rate of 12.5% for the assessment period from January 2007 to January 2010 in respect of sales of masala powder (i.e., mixture of spices and other ingredients). The question as to whether the assesses are liable to be taxed at 4% or 12.5% is pending consideration before the Division Bench in STRP No. 77 of 2010 ( Sakthi Masala (Private) Limited Vs. State of Karnataka, ). Therefore, the parties before the Court will have to wait till disposal of the matter before the Division Bench in STRP No. 77 of 2010 (Sakthi Masala (Private) Limited''s case). In view of the same, it is unnecessary for me to enter into merits in these writ petitions. It would be sufficient if the respondents are directed not to take coercive steps against the petitioner for recovery of tax till the disposal of the matter by the Division Bench in STRP No. 77 of 2010. Both the parties are bound by the decision of the Division Bench in STRP No. 77 of 2010. In case if the Division Bench holds that the assessees are liable to pay the tax at the rate of 12.5% p.a., then, it is open for the respondents to recover the tax at the said rate. In case if the Division Bench concludes that the assessees are liable to pay the tax at 4%, then, the impugned order shall be treated as having been made for a direction to pay 4% tax. Accordingly, the following order is made:

The writ petitions are disposed of with a direction to the parties to wait till the decision of the Division Bench in STRP No. 77 of 2010. Both the parties would be bound by the order to be passed in STRP No. 77 of 2010. Till then, no coercive steps shall be taken against the petitioner for payment of tax. It is needless to observe that both the parties are at liberty to proceed in accordance with the law after disposal of the matter by the Division Bench in STRP No. 77 of 2010.

Learned Counsel for the appellants submits that STRP No. 77 of 2010 ( Sakthi Masala (Private) Limited Vs. State of Karnataka, ) has already been dispose of by the Division Bench of this Court vide order dated 28-9-2012 in favour of the assessee. He further submits that the appellants have carried the order passed by the Division Bench to the Supreme Court in SLP (Civil) Nos. 14482 to 14538 of 2013 and the same is now pending for consideration. He fairly states that the SLP is yet not admitted nor is there any interim order passed by the Supreme Court and view thereof these appeals may be disposed of with liberty to proceed in accordance with law after disposal of the SLP by the Supreme Court. In the circumstances, we do not find any reason to keep these appeals and applications pending any further or to even issue notice to the respondents and make them appear unnecessarily at this stage. The liberty which is reserved to the appellants/parties by the learned Single Judge in the impugned order can be exercised by them in the event they succeed in the Supreme Court. Keeping all the rights of the parties open, we extend the liberty to the parties till disposal of the SLP/appeal by the Supreme Court.

With these observations, the writ appeals and the interim application are disposed of.