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TMI Blog2010 (6) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of Defence, Department of Revenue, Central Board of Excise and Customs with regard to conversion of anhydrous ammonia into liquor ammonia and as to whether it amounts to manufacture has no relevance. Therefore, reference is made by the counsel for the appellant to the circular. Hence, the Authority of Advance Ruling was justified in holding that the product, “ammonia, anhydrous” is different from “ammonia in aqueous solution” and thereby the rate of tax would be different i.e., 12.5% for the latter and 4% for the former product. Accordingly, the said order does not call for any interference in this appeal. Hence, the substantial question of law is answered in favour of the revenue and against the assessee. - S.T.A. No. 15 of 2006 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant against the appellant. It is the said order that is questioned in this appeal. 3. We have heard the learned counsel for the appellant and the learned Addl. Government Advocate for the respondent-State. 4. It is submitted on behalf of the appellant that the appellant is a Supplier of Ammonia and that the said Ammonia is supplied in anhydrous or gaseous form and since the quantity of supply is always huge for the purpose of convenience of transportation the said product is converted into aqueous solution and after reaching the destination thereafter, water from the said aqueous solution is removed and in effect, the product that is sold is ammonia anhydrous. That by notification dated 23-3-2005 the rate of tax was only at 4% in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Government at Sl. No. 35 under Sub-Heading No. 2814.00 the following is mentioned, and the said notification is extracted as follows: GOVERNMENT OF KARNATAKA No. FD 55 csl 2005(8) Karnataka Government Secretariat Vidhana Soudha In exercise of the powers conferred by Section 4(l)(a) read with entry 35 of Third Schedule of the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004), the Government of Karnataka hereby specifies with effect from the first day of April, 2005, the goods mentioned in column (4) of the table below with heading and sub-heading numbers under the Central Excise Tariff Act, 1985 (Act 5 of 1986) mentioned in columns (2) and (3), as industrial inputs and packing materials, namely Within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Act. 1985 read with Explanatory Notes as updated from time to time published by the Customs Cooperation Council, Brussels apply for the interpretation of this notification. (2) Where any commodities are described against any heading or, as the case may be, sub-heading, and the aforesaid description is different in any manner from the corresponding description in the Central Excise Tariff Act, 1985, then only those commodities described as aforesaid will he covered by the scope of this notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of this notification. (3) Subject to Explanation 2, for the purpose of any entry contained in this notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Tariff Act then only the latter could be considered or otherwise as per explanation (2). The notification issued under the KVAT Act would override the one issued under the Central Excise Tariff Act with regard to the goods enumerated in the said notification. On a reading of the same it becomes very clear that the Department has consciously deleted ammonia in aqueous solution from the notification dated 30-4-2005. There is a conscious exclusure of ammonia aqueous solution from the list of industrial inputs as per the notification dated 30-4-2005. As such, the same is not to be taxed at 4%, but under the general category at 12.5%. Therefore, the reference made to Circular No. 236/70/96-CX. dated 1-8-1996 issued by the Ministry o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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