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TMI Blog2004 (4) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment, two of which are relevant in these revision petitions: (i) taxing of Shrinkkomp as cement at 13 per cent as falling under entry 7 of part C of the Second Schedule to the Act; and (ii) subjecting the turnover relating to charges for packing material specified and charged by the assessee separately (without including it in the price of goods) to turnover tax under section 6B of the Act. The petitioner therefore filed appeal Nos. KST AP. Nos. 74/1994-95 and 91/1994-95 before the First Appellate Authority in regard to its grievances. The appellate authority confirmed the findings of the assessing authority in regard to those two aspects, but granted some relief in regard to some other grievances by a common order dated July 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It is nothing but a cement used for special purposes as contrasted from portland cement which is used for general purposes. It was also pointed out that in common parlance, the persons in the trade consider Shrinkkomp and other similar grouting material as a special cement. They submit that Shrinkkomp is nothing but a brand name given by the assessee to expansion cement or grouting material. The department contends that entry 7 takes into its hold, all cements and is not restricted only to portland cement. The word cement in its general sense covers a wide variety of binding materials used for many different purposes, but more commonly it implies a finely ground powder which is a binding material used in building and civil engi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... panding and non-shrinking cements expand slightly on hydration, thus offsetting the small contraction that occurs when freshly made concrete dries for the first time. One standard method of producing expanding and non-shrinking cements is to mix portland cement with an expansive agent made by clinkering a mix of chalk, bauxite and gypsum (vide The new Encyclopaedia Britannica, 15th Edition, Volume 3 page 19 and Volume 21, pages 293 to 297). Assigning a specific brand name does not take away the basic nature of goods. A car does not cease to be a car by calling it Maruthi or Mercedes . An expansion cement does not cease to be a cement by calling it Shrinkkomp . The special properties and uses highlighted by the assessee do not diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f one and a quarter per cent of its total turnover, if his total turnover is not less than five lakh rupees but is less than two hundred and fifty lakh rupees in a year, or (b) at the rate of one and a half per cent of his total turnover if its total turnover is not less than two hundred fifty lakh rupees in a year; (ii) . . . Provided that no tax under this sub-section shall be payable on that part of such turnover which relates to, (i) to (vi) . . . (vii) all amount falling under the head 'charges for packing materials and cost of labour', when specified and charged for by the dealer separately without including such amounts in the price of the goods sold. (viii) to (xi) . . . Provided further that, save as o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver (for identifying the classes of traders) and taxable turnover (for purposes of levying turnover tax) should be determined. The principles contained in section 5 of the Act relating to levy of sales tax and purchase tax, etc., will not apply for determining the turnover that has to be taxed under section 6B of the Act. Similarly, the deductions provided in rule 6 of the Karnataka Sales Tax Rules, 1957, cannot be applied in determining the total turnover for the purpose of section 6B. (vide decision of the Supreme Court in S. Kodar v. State of Kerala [1974] 34 STC 73, decisions of the Division Benches of this court in S.N. Guggari and Company v. Commissioner of Commercial Taxes in Karnataka [1998] 110 STC 426, B.V. Aswathaiah Bros. v. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng materials have already been subjected to tax under this Act or not or whether the price of the containers or of the packing materials is charged for separately or not, be the same as those applicable to goods contained or packed: Provided that no tax under this sub-section shall be leviable if the sale or purchase of goods contained in such containers or packed in such packing materials is exempt from tax under this Act. Learned Government Advocate submitted that as the section starts with a non-obstante clause, even, for the purpose of interpreting section 6B also, cost of container or packing material should be treated as part of the cost of the goods sold, as provided in section 5(3D). The said contention cannot be accepted. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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