Case Law Details
Mistake Committed by CA in filing VAT Form 240 not a mistake to attract Section 69[1] of the VAT Act: Karnataka HC
In a recent case of M/s. Fresh and Honest Cafe LTD. V. The Deputy Commissioner [Ct] and Anr. (Karnataka High Court) , a ruling was stated by Justice S. Sujatha (Karnataka High Court) that stats that any mistake said to have been committed by a learned CA in filing VAT Form 240 will not be seen as an intentional mistake and further not levy section 69(1) as court rule by Karnataka high court.
It this case the petitioner was a Pvt. Ltd. company as well as a registered dealer under the Value Added Tax Act, 2003 (Karnataka). Due to inadvertence, CA made a mistake while filing the VAT Form 240, As per the report, the ineligible tax deduction of Rs.6,25,463/- under Section 11 was shown in the form, which actually related to the petitioner’s TDS, it was deducted under the provision of section 18 of the Act by the contractors. After that, the petitioner claimed for the input tax credit (ITC) on the deducted tax amount, which was denied by the authority on the basis of VAT Form 240. Later a rectification application also filed and submitted by the petitioner under Section 69[1] of the Act, which was also rejected by the authority.
The petitioner side contended that the responsible authority doesn’t show any intention to solve the mistake that was very clearly noticeable in the records in filing the VAT Form 240, the same need to be corrected/ solved on the basis of rectification application submitted by the petitioner Chartered Accountant. They further added that the authority is acting hastily in order to recover the tax amount, without caring about the appeal period under the Act for the petitioner to exercise.
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very detailed writeup
thanks