2009 (9) TMI 904 - HC - VAT and Sales Tax

Summary

Issues: Classification of product "roofit mix" for tax purposes under the Kerala General Sales Tax Act, 1963.

Classification under the First Schedule:
The main issue raised in the revision was the classification of the product "roofit mix" for tax purposes under the Kerala General Sales Tax Act, 1963. The petitioner argued that the product should be taxed under the residuary entry at a lower rate, while the Government Pleader contended that it falls under entry 27, attracting a higher tax rate. The court examined the product description and its components, which included sand, cement, special additives, and fillers. It was established that the product was used for binding, filling materials, and repair of concrete slabs, particularly to prevent water leakage. The court concluded that since cement was a component of the product and a key ingredient, it fell under entry 11, which covered "cement products including products in combination with other materials not elsewhere mentioned in this Schedule."

Interpretation of Residuary Entry:
The court rejected the petitioner's argument that the product should be classified under the residuary entry, emphasizing that the residuary entry applied to items not covered by specific entries. In this case, since the product fell under entry 11, which specifically included cement products in combination with other materials, the court deemed the residuary entry inapplicable. Consequently, the court allowed the revision partly, declaring the product as falling under entry 11 and subject to taxation at 12 percent. The assessing officer was directed to modify the assessment accordingly.

Conclusion:
In conclusion, the court's decision clarified the classification of the "roofit mix" product under the Kerala General Sales Tax Act, 1963. By analyzing the components and purpose of the product, the court determined that it fell under entry 11, covering cement products in combination with other materials. The court's interpretation of the residuary entry and its application to items not covered by specific entries played a crucial role in resolving the classification issue and determining the appropriate tax rate for the product.