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TMI Blog2004 (11) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessing authority after rejecting the annual returns filed by the assessee for the assessment year 1993-1994, has passed the assessment order under section 12(3) of the KST Act and section 9(2) of the CST Act on the sales turnover of decorative tiles, glass tiles, flooring tiles, etc., at 15 per cent taking a view that the goods in question would fall under entry 8(iv) of part T of the Second Schedule to the KST Act. 3.. Aggrieved by the aforesaid assessment orders, the assessee had carried the matter in appeals before the first appellate authority, who by his order dated June 9, 1998 has allowed the appeals filed both under the KST Act and the CST Act, taking a view that the turnover relating to "roofing tiles" is liable to tax at 5 per cent and further taking a view that the "decorative tiles" are also "roofing tiles" had directed the assessing authority to levy tax at 5 per cent under the KST Act and at 10 per cent on CST turnover in the absence of "C" forms, by treating the commodity in question as an item falling under entry 8(iii) of Part T of the Second Schedule to the Act. 4.. The Additional Commissioner of Commercial Taxes, who is the revising authority, has take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss tiles, etc., but for the purpose of sales tax returns, the assessee has not shown such bifurcated sales of roofing tiles and other tiles such as decorative tiles, instead has clubbed the two together and has filed the returns and admitted to tax only at 5 per cent, instead of different rate of tax at 5 per cent for roofing tiles under entry 8(iii) of Part T of the second schedule to the Act and at 15 per cent for other tiles under sub-entry (iv) of entry 8 of Part T of the second schedule to the Act. II. The Intelligence Officer, who had inspected the business premises of the assessee had concluded the provisional assessments up to the date of assessment treating that the sales turnover of the assessee includes the ordinary roofing tiles and also decorative tiles which would fall under entry 8(iv) of Part T of the second schedule to the Act. 6.. After noticing these factual aspects, the assessing authority applying common parlance theory proceeds to hold as follows: "In view of the above, the roofing tiles as per entry 8(iii) of the second schedule of the KST Act, 1957 mean the tiles normally used on wooden rafters basically to cover from sunlight, rain and wind. The til ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irteen per cent 1-4-1995 to 31-3-1996 Fifteen per cent 1-4-1996 to 31-3-1998 Twelve per cent From 1-4-1998 [Ten per cent] (iii) Roofing tiles other than country tiles 1-4-1988 to 31-3-1995 Five per cent From 1-4-1995 [Four per cent] (iv) Other tiles not covered by items i), (ii) and (iii) above. 1-4-1988 to 31-3-1996 Fifteen per cent 1-4-1996 to 31-3-1998 Twelve per cent From 1-4-1998 [Ten per cent] (v) Jointing powder other than cement) and situmixture for laying tiles and chips specified above. 1-4-1988 to 31-3-1995 Thirteen per cent 1-4-1995 to 31-3-1996 Fifteen per cent 1-4-1996 to 31-3-1998 Twelve per cent From 1-4-1998 [Ten per cent] 10. The first principle which requires to be kept in view while interpreting the Schedule to any fiscal laws, is, that there is a functional difference between the body of a statute on the one hand and the Schedule, which is attached thereto, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing authority and the revisional authority could not have drawn a thin line between the roofing tiles made out of clay and also decorative tiles made out of clay to levy different rate of tax. 13.. The expression "roofing tiles" is a combination of two words, viz., "roof" and the "tiles". Neither the "roof" nor the "tiles" is defined under the Act. In common parlance, "roof" is understood as the cover of any building and the term includes the materials that support the roof. The expression "tiles" is defined in the Random House Dictionary of the English Language College Edition as "thin slab or bent piece of baked clay, sometimes painted or glazed, used for various purposes, as to form one of the units of a roof covering, pavement, or revetment". In the World Book of Encyclopaedia the word "tiles" is defined to mean "thin sheets of clay pressed or moulded into shape and fired in kilns in the same process as is used for making bricks". The tiles may be left in its rough state. It may also be given a smooth surface called glazing, by dipping or spraying the tile with a material that joins with the clay. Finer grades of clay are used in making tiles for roofs, for walls and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. In our view, the Legislature intends to levy a lower rate of tax, if the tiles are used by the consumer for the purposes of using it as a roofing tiles and this may be, keeping in view the present trend that the common man or the persons who are below the poverty line may think of using tiles made of clay to make shelter for them by using ordinary tiles. The persons, who belong to affluent class may use tiles made out of clay to give better appearance while building their houses and they use the decorative tiles to give an appearance to their building rather than to protect themselves from rain and shelter as the assessing authority notices in its order. No doubt it is true that the roofing tiles and decorative tiles are manufactured by using a particular type of clay and may be using more or less similar process to obtain the end-product. In our view, that cannot be the only criteria for deciding whether decorative tiles which are made of clay are the same as roofing tiles. Here the intention of Legislature which is paramount not only requires to be taken note of but also the purpose for which the Legislature intends to levy tax on "roofing tiles" at a reduced rate of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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