Karnataka HC sets aside 2007 amendment of KVAT
Bengaluru, Jan 22: The High Court of Karnataka has set aside an amendment to the Karnataka Value Added Tax Act by a discriminatory taxation which encouraged businesses to make purchases from outside the state.
Setting aside the 2007 amendment by which the clause 15(5)(e) was inserted in the KVAT Act, a division bench of Justices PS Dinesh Kumar and CM Poonacha recently said, "We are of the opinion that the Amendment is discriminatory in nature and also not in favour of the welfare of the economy of the State as it encourages purchases from outside the State."
The 2007 amendment had a retrospective effect from April 1, 2006.
A single judge bench had upheld the validity of Section 15(5)(e) but ruled it was prospective in nature.
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The businesses which had challenged the amendment filed the appeals before the High Court.
"The effect of Amendment of Section 15(5)(e) is that, if a dealer who has opted for the composition scheme, purchases goods from an unregistered dealer, he has to pay tax payable on such purchase in addition to the composition tax," the court noted.
The businesses contended that when they made purchases from unregistered dealers in Karnataka, they were made to pay the additional tax.
However, if the purchases were made from outside Karnataka, no such additional taxes were imposed.
The state contended that the clause was inserted so that unregistered dealers in Karnataka register under the KVAT.
The HC, however, said that the State should use its officers to enforce the KVAT rather than target registered users.
It said in the judgement, "We find merit in the argument of the assessees, because the object sought to be achieved by the Amendment is to encourage purchase from registered dealers. This object will fail and instead encourage purchase from dealers outside the State since goods purchased within the State are only taxable and therefore, the object sought to be achieved will not be fulfilled.
We may record that the State has all the machinery such as Tax Inspectors, Flying Squads etc. to identify the URDs and to register them as dealers."
Allowing a batch of appeals, the HC said, "Section 15(5)(e) of the KVAT Act is declared ultra vires Constitution of India."
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Bhopal gas tragedy: Effects of leak seen in next generation of survivors, says ex-forensic doctor
Bhopal (PTI): The effects of poisonous gases that leaked from the Union Carbide factory in Madhya Pradesh's Bhopal 40 years ago were seen in the next generations of those who survived the tragedy, a former government forensic doctor has said.
At least 3,787 people were killed, and more than five lakh were affected after a toxic gas leaked from the pesticide factory in the city on the intervening night of December 2 and 3, 1984.
Speaking at an event held by organisations of gas tragedy survivors on Saturday, Dr D K Satpathy, former head of the forensics department of Bhopal's Gandhi Medical College, said he performed 875 post-mortems on the first day of the disaster and witnessed 18,000 autopsies the next five years.
Sathpathy claimed Union Carbide had denied questions about the effects of poisonous gases on unborn children of women survivors and said effects would not cross the placental barrier in the womb in any condition.
He said blood samples of pregnant women who died in the tragedy were examined, and it was found that 50 per cent of poisonous substances found in the mother were also found in the child in her womb.
Children born to surviving mothers had the poisonous substances in their system, and this affected the health of the next generation, Sathpathy claimed and questioned why research on this was stopped.
Such effects will continue for generations, he said.
Satpathy said it was said that MIC gas leaked from the Union Carbide plant, and when it came in contact with water, thousands of gases were formed, and some of these caused cancer, blood pressure and liver damage.
Rachna Dhingra of Bhopal Group for Information and Action said Satpathy, who carried out most autopsies, and other first responders in the 1984 disaster, including the senior doctors in the emergency ward and persons involved in mass burials, narrated their experiences during the event.
Rashida Bee, president of the Bhopal Gas Peedit Mahila Stationery Karmchari Sangh, a poster exhibition covering every aspect of the disaster will be held till December 4 to mark the 40th anniversary of the tragedy.
An anniversary rally will be organised, with focus on global corporate crimes such as industrial pollution and climate change, she said.
