The Hindu : Karnataka / Bangalore News : World Resorts deposits tax dues

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Thursday, May 29, 2008
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Karnataka

Karnataka - Bangalore

World Resorts deposits tax dues

Staff Reporter

The firm owes
Rs. 5.12 crore to the State as luxury tax
Hindi film actor Sanjay Khan is one of its directors

BANGALORE: World Resorts Limited, of which Hindi film actor and producer Sanjay Khan is one of the directors, on Wednesday filed a memo before the Karnataka High Court saying that it had deposited Rs. 5.12 crore it owed to the State as luxury tax.

In its memo filed before the High Court registry, World Resorts said in addition to Rs. 5.12 crore, it had also deposited Rs. 80 lakh on May 9 as current luxury tax. It said it had complied with a High Court order asking it to deposit in full the amount it owed as luxury tax to the State Government.

A Division Bench of the court had asked the company to deposit the dues after it had filed an appeal against a single judge order of November 28, 2007 levying costs of Rs. 1 lakh on it and dismissing its claim for tax relief.

World Resorts had said that it had petitioned a single judge for staying the notices issued to it by the Department of Commercial Tax for collection of tax for 2002-03 and 2003-04. The single judge had not only dismissed the petition and also levied costs. They contended that the single judge erred in not staying the notices issued to them under Section 14 of the Karnataka Sales Tax and under Section 8 A of the Luxury Tax.

Challenging these notices, World Resorts said it had set up a Rs. 145 crore resort centre at Nagarur village, Dasanapura hobli off Tumkur Road near Bangalore. It said it had decided to set up the project near Bangalore after the State announced a new tourism policy on May 30, 1992.

It said on October 27, 2003, it made an application to the then Chief Minister, requesting him to consider its plea for deferring the collection of luxury tax and sales tax. However, on October 30, 2003, the Assessing Authority issued notices under the Sales Tax Act asking it to pay sales tax arrears for 2002-03 and 2003-04.

The Assessing Authority on July 30, 2004 once again issued notices to it under the provisions of the Sales Tax Act and Luxury Act. On February 8, 2005, the State intimated to World Resorts that its claim for benefits under the tourism policy is rejected. On November 30, 2005, the Commercial Tax Department issued “Ganishee” notices and seized the company’s bank accounts.

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