Case Law Details
Mary Carpentry Works Vs State of Karnataka (Karnataka High Court)
The case of Mary Carpentry Works Vs State of Karnataka addresses critical issues regarding sales tax and interest on refunds. This legal battle, spanning several years, culminated in a decision by the Karnataka High Court. The petition challenged orders by the Karnataka Appellate Tribunal and the Joint Commissioner of Commercial Taxes, highlighting discrepancies in the interpretation and application of the Karnataka Sales Tax Act, 1957.
Mary Carpentry Works, a business engaged in the manufacture and sale of wooden goods in Dandeli, Karnataka, was registered under the Karnataka Sales Tax Act, 1957, and the Central Sales Tax Act, 1956. The dispute arose from the assessment year 1980-81. An assessment order was initially passed on January 13, 1983. The petitioner claimed an excess tax payment of Rs. 72,000 and sought its refund, leading to a prolonged legal battle.
After numerous appeals, the appellate authority allowed the petitioner’s claim on March 24, 2012. The petitioner then sought interest on the refunded amount from the date of payment, which was rejected by the assessing authority and upheld by the first appellate authority. This led to the present revision petition filed before the Karnataka High Court.
The Legal Journey
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