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2023 Supreme(Online)(KAR) 12410
CRP No.526/2022
C/W CRP No.527/2022
CRP No.530/2022
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 23RD DAY OF JUNE 2023
PRESENT
THE HON’BLE MR. JUSTICE P.S.DINESH KUMAR
AND
THE HON’BLE MR. JUSTICE C.M. POONACHA
C.R.P No. 526 OF 2022
C/W
C.R.P No. 527 OF 2022
C.R.P No. 530 OF 2022 (TAX)
IN CRP No.526 OF 2022
BETWEEN:
M/s. ANHEUSER BUSCH INBEV INDIA LIMITED
(FORMERLY KNOWN AS SAB MILLER INDIA LIMITED)
A COMPANY UNDER COMPANIES ACT (1), 1956
AND HAVING ITS OFFICE AT 6TH FLOOR
MFAR GREEN HEART BUILDING
MANYATA TECH PARK, NAGAVARA
BENGALURU-560 045.
AND REPRESENTED BY ITS
SENIOR MANAGER
MR. DINAKAR .R
.…PETITIONER
(BY Mr. PRASAD PARANJAPE, ADVOCATE FOR
Mr. BHARATH JANARTHANAN, ADVOCATE)
AND:
1.
THE JOINT COMMISSIONER OF
COMMERCIAL TAXES, (APPEALS-6)
BENGALURU, TTMC, B BLOCK
CRP No.526/2022
C/W CRP No.527/2022
CRP No.530/2022
2
BMTC BUILDING
SHANTHINAGAR
BENGALURU-560 027.
2.
THE DEPUTY COMMISSIONER OF
COMMERCIAL TAXES, (AUDIT)-6.6
DVO-VI, KIADB BUILDING, B-BLOCK
THIRD FLOOR, PEENYA INDUSTRIAL AREA
PEENYA SECOND STAGE
BENGALURU-560 058.
3.
STATE OF KARNATAKA
BY ITS CHIEF SECRETARY
TO THE GOVERNMENT
VIDHANA SOUDHA
BENGALURU-560 001.
…RESPONDENTS
(BY SHRI. JEEVAN J. NEERALGI, AGA)
THIS CRP IS FILED UNDER SECTION 15-A(1) OF THE
KARNATAKA TAX ON ENTRY OF GOODS ACT, 1979, AGAINST THE
ORDER DATED 23.05.2022 PASSED IN STA NO.232/2017 ON THE FILE
OF THE KARNATAKA APPELLATE TRIBUNAL, BENGALURU, ALLOWING
THE APPEAL AND SETTING ASIDE THE ORDER DATED 06.02.2017
PASSED IN KTEG AP NO.15/15-16 ON THE FILE OF THE JOINT
COMMISSIONER OF COMMERCIAL TAXES (APPEAL-6), BANGALORE.
DISMISSING THE APPEAL AND UPHOLDING THE RE-ASSESSMENT
ORDER DATED 11.12.2015 PASSED BY THE DEPUTY COMMISSIONER
OF COMMERCIAL TAXES (AUDIT)-6.6, DVO-6, BANGALORE FILED
UNDER SECTION 5(4) R/W SEC.7(2) AND 7(3) OF THE KTEG ACT, 1979
FOR THE TAX PERIODS FROM APRIL 2011 TO MARCH 2012.
IN CRP No.527 OF 2022
BETWEEN:
M/s. ANHEUSER BUSCH INBEV INDIA LIMITED
(FORMERLY KNOWN AS SAB MILLER INDIA LIMITED)
A COMPANY UNDER COMPANIES ACT (1), 1956
AND HAVING ITS OFFICE AT 6TH FLOOR
MFAR GREEN HEART BUILDING
MANYATA TECH PARK, NAGAVARA
CRP No.526/2022
C/W CRP No.527/2022
CRP No.530/2022
3
BENGALURU-560 045.
AND REPRESENTED BY ITS
SENIOR MANAGER
MR. DINAKAR R
.…PETITIONER
(BY Mr. PRASAD PARANJAPE, ADVOCATE FOR
Mr. BHARATH JANARTHANAN, ADVOCATE)
AND:
1.
THE JOINT COMMISSIONER OF
COMMERCIAL TAXES, (APPEALS-6)
BENGALURU, TTMC, B BLOCK
BMTC BUILDING, SHANTHINAGAR
BENGALURU-560 027.
2.
THE DEPUTY COMMISSIONER OF
COMMERCIAL TAXES, (AUDIT)-6.6
DVO-VI, KIADB BUILDING, B-BLOCK
THIRD FLOOR, PEENYA INDUSTRIAL AREA
PEENYA SECOND STAGE
BENGALURU-560 058.
3.
STATE OF KARNATAKA
BY ITS CHIEF SECRETARY
TO THE GOVERNMENT
VIDHANA SOUDHA
BENGALURU-560 001.
…RESPONDENTS
(BY SHRI. JEEVAN J. NEERALGI, AGA)
THIS CRP IS FILED UNDER SECTION 15-A(1) OF THE
KARNATAKA TAX ON ENTRY OF GOODS ACT, 1979, AGAINST THE
ORDER DATED 23.05.2022 PASSED IN STA NO.231/2017 DISMISSING
THE APPEAL AND CONFIRMING THE ORDER DATED 06.02.2017 PASSED
IN KTEG AP NO.18/15-16 ON THE FILE OF THE JOINT COMMISSIONER
OF COMMERCIAL TAXES (APPEAL-6) BANGALORE, DISMISSING THE
APPEAL
AND
UPHOLDING
THE
REASSESSMENT
DATED
06.11.2015 PASSED BY DEPUTY COMMISSIONER OF COMMERCIAL
TAXES (AUDIT)6.6, DVO-6, BENGALURU FILED U/S 6(1), SEC.7(2) AND
7(3) OF THE KTEG ACT, 1979 FOR THE TAX PERIOD OF 2008-09.
4
IN CRP No.530 OF 2022
M/s ANHEUSER BUSCH INBEV INDIA LIMITED
5
ORDER DATED 23.05.2022 PASSED IN STA NO.230/2017 ON THE FILE
OF THE KARNATAKA APPELLATE TRIBUNAL, BENGALURU, DISMISSING
IN KTEG AP NO.16/15-16 ON THE FILE OF THE JOINT COMMISSIONER
OF COMMERCIAL TAXES APPEAL-6, BANGALORE, DISMISSING THE
ORDER
DATED
06.11.2015 PASSED BY THE DEPUTY COMMISSIONER OF COMMERCIAL
TAXES (AUDIT)6.6, DVO-6, BENGALURU FILED U/S 6(1) R/W SEC.7(2)
AND 7(3) OF THE KTEG ACT, 1979 FOR THE TAX PERIOD OF 2006-07.
THESE CRPs HAVING BEEN HEARD AND RESERVED FOR ORDERS
ON 17.03.2023, COMING ON FOR PRONOUNCEMENT OF ORDERS THIS
DAY, P.S. DINESH KUMAR J., PRONOUNCED THE FOLLOWING:-
ORDER
These Revision Petitions by the assessee, directed
against the common order dated May, 23 2022, in STAs No.
227 to 232/2021 for A.Ys1. 2009-10, 2010-11, 2011-12
passed by Full Bench of KAT2, Bengaluru have been filed to
consider following questions of law:
1. Whether the Impugned Order upholding the assessment
orders passed under Section 5(4) of the KTEG Act in STA
232/2017 for F.Y. 2011-12 is in accordance with law?
2. Whether the Impugned Order has erroneously upheld the
non-speaking Tribunal Order which confirmed the levy of tax
against the Petitioner on Hops pellets and incorrect
calculation of turnover of entry tax on maize flakes and
1 Assessment Year
2 Karnataka Appellate Tribunal
6
confirmed entry tax liability on goods purchased within the
same local area for F.Y. 2011-12?
3. Whether the Impugned Order has erroneously confirmed
the levy of interest for F.Y. 2011-12 against the Petitioner
even when there has been no 'default' in the payment of
taxes as mandated by Section 7(2) of the KTEG Act?
4. The Impugned Order has erroneously confirmed the levy of
penalty for F.Y. 2011-12 against the Petitioner as per the
provisions of Section 7(3) of the KTEG Act?
2. Heard Shri. Prasad Paranjape, learned Advocate for
the Assessee and Shri. Jeevan Neeralgi learned AGA for the
Revenue.
3. Briefly stated the facts of the case are, assessee-
M/s. Anheuser Busch Inbev India Ltd., is a company3
engaged in the manufacture and sale of beer under various
brands. It procures agricultural produce such as barley/malt,
maize flakes, hops pellets which are used as raw material in
the manufacture of beer. Pursuant to order of this Court
dated September 14, 2015 in State of Karnataka Vs. United
3 Registered under the Companies Act, 1956
7
Breweries Limited4 (hereinafter referred to as ‘United
Breweries’ for short), a notice dated November 26, 2015
was issued to the assessee proposing to impose tax under
Karnataka Tax On Entry of Goods Act, 19795 on barley/malt,
maize flakes and hops pellets. The said demand has been
confirmed by the DCCT6, the KAT and a larger bench of KAT.
Hence, these petitions by assessee.
4. Shri. Prasad Paranjape, for the Assessee, praying to
allow the petitions submitted that:
tax has been levied on the basis of the order of this
Court in United Breweries and the facts of that case
are not similar to assessee’s case;
assessee is not carrying out any activity which is
outside the scope and ambit of cleaning, grading,
sorting or drying which are excluded under Section
2A(1) of the KTEG Act;
4 CRP Nos. 204, 230 and 103 of 2011
5 KTEG Act for short
6 Deputy Commissioner of Commercial taxes (Audit)-6, Bangalore
8
maize flakes and malted barley are already ‘fit for
consumption’ even before subjected to any process.
The aspect of goods being ‘fit for consumption’ was
not under consideration in United Breweries;
assessee had already paid Entry Tax on ‘hops
pellet’ under Section 7(1) of the KTEG Act as the
law then existed. The Revenue has imposed
additional tax based on the judgment of this Court
and interest thereon under Section 7(2) of the
KTEG Act. Thus assessee had not commi
