Flipkart won against the Karnataka Tax Department; HC will return Rs 16.11 crore with interest

The Karnataka High Court has directed Flipkart India to return Rs 5.1.5 crore to the commercial tax department, which, while challenging the tax assessment orders, had deposited 70% of the total tax demand to the pre-tax.Justice Shri. Krishna Kumar has ordered the department to pay interest on the rate applicable to Flipkart India at a sum of Rs 23 crore from the date of the return date, which is available in July.

Professional Tax Officers Authorities considered mobile mobile chargers as an unpleasant item, and a prolonged controversy arose by increasing the demand of Rs 23.01 crore after paying a higher rate. The Department did this in accordance with the Karnataka VAT Act 9, 2003 in the period from 1-3-5-6-15, in accordance with the four separate re-evaluation order in 2016 and 2 in.

Angry, Flipkart India filed an appeal to the officials of the department by depositing cash amount of Rs 6.90 crore (30%of demand) as per the required VAT laws. When the department rejected the appeal, the Electronic Credit Laser (ECL) challenged the Dismus before the Karnataka Appeal Tribunal in July 2019 after depositing the remaining tax demand for Rs 16.11 crore (70%of the tax demand) using the input tax credit (ITC).

The tribunal, however, allowed Flipkart’s appeals on March 7, and the HC Division Bench later rejected the sales tax repetition petition filed by the department. Thus, the full 100% return of the entire deposit given to the Flipkart India department was the right to return.

However, the department returned only Rs 6.90 crore (30%of the tax demand) and discharged by Flipkart using ITC. The department did not respond to Flipkart India’s requests to return Rs 1.1.5 crore with the interest rate.

Justice Krishna Kumar wrote in his order: “… I have thought that the petitioner (Flipkart) is responsible for repaying the amount of the amount of 70% pre-diposit through ITC/ECL through the entire 70% pre-diposit, and it is responsible for repaying the entire 70% pre-diposit.”

A senior business officer of the commercial tax department SAID said that if the dealer pays using the Input Tax Credit (ITC) in accordance with the provisions of the Karnataka VAT law, the issue here is whether the government is paying interest on paying the dealer. The department is investigating the court order.

According to a comment on the Microblogging Site X, the High Court has given a significant explanation and concession to the businesses involved in tax disputes, especially on pre-concepts and returns. The court has ruled that if the return is agreed, the original pre-dipose must be paid in cash or using input tax credit in cash.