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High Court upheld assessment as University was doing business to make profit
High Court upheld assessment as University was doing business to make profit
Manipal University was a registered dealer. Assessing Authority visited University’s premises and collected sales particulars of prospectus and application forms. It found that University had not declared sales of application forms and offered tax. Tax assessment order was passed and penalty was levied. Appellate Authority and the Tribunal confirmed the order. High Court upheld assessment as University was indulging in business to make profit.-900228
1. The petitioner was a registered dealer under the VAT Act and Central Sales Tax Act, 1956.
2. Assessing Authority visited the petitioner's premises and collected sales particulars of prospectus and application forms for the relevant period.
3. It found that the University had not declared the sales of application forms and prospectus and offered tax in the form VAT 100 filed by them.
4. A pre-assessment notice u/s 39(1), and an order was passed.
5. Assessing Authority levied penalty u/s 72(2).
6. Appellate Authority and the Tribunal confirmed the order.
On appeal, the High Court held as under:
7. Merely because, the University was established for imparting education does not mean that it is not indulging in the business so as to make profit out of the sale of prospectus and application forms.
8. Their intention to make profit is clear from the facts and figures placed on record.
9. That apart, once having registered as a dealer under Section 22 of the Act the total turnover would mean aggregate turnover in all goods of a dealer at a place of business in the State, whether or not the whole or any portion of such turnover is liable to tax.
10. We are in agreement with the view taken by the Tribunal that the sale of prospectus and application forms would fall under Entry 71 of the Third Schedule.
Case Reference - M/s.Manipal University vs State of Karnataka.
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 02ND DAY OF APRIL 2014 PRESENT
THE HON'BLE MR.JUSTICE DILIP B.BHOSALE AND
THE HON'BLE MR. JUSTICE B.MANOHAR
STRP NO.412/2013 & STRP.NOS.795-850/2013
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