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TMI Blog2011 (7) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... t the clarification has to be applied prospectively cannot be accepted. However, since the clarification is issued only pursuant to the judgment after relevant year, we direct the respondents to waive the interest, provided the appellant clears the arrears of tax within three months from now. However, the waiver granted need not be treated as a proceedings for the Department in other cases. - OT. Appeal No. 1 of 2011 - - - Dated:- 4-7-2011 - RAMACHANDRAN NAIR C.N. AND GOPINATHAN P.S., JJ. The judgment of the court was delivered by C.N. RAMACHANDRAN NAIR J.- This is the second round of litigation by the appellant, which pertains to the rate of tax payable under the Kerala Value Added Tax Act on the appellant's product, namely, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the rate of tax payable in respect of the item is 12.5 per cent as provided under section 6(1)(d) of the Act. It is against this clarification order, the appellant has filed this appeal. Both sides produced before us samples of the products manufactured and sold in the market. It is a simple product made from stainless steel rod with three bends giving U shape to it, so that, it can be tied to iron rods in the concrete roof slab for attaching fans. If the item does not fall under any of the entries of the Schedules 1 to 4, then by virtue of the operation of section 6(1)(d) of the Act the rate of tax applicable is 12.5 per cent. This section authorises the Government to notify other items which are taxable at 12.5 per cent. In fact, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms tariff entry under Chapter 72 with HSN Code 7222 wherein under the specific entry 7222.40 angles, shapes and sections of stainless steel articles are covered. The contention raised by the learned Government Pleader is that the products covered by the customs tariff entries based on which VAT classification is made are basic products, namely, bars and rods of stainless steel or angles, shapes and other sections of stainless steel obtained in the manufacturing process that is by hot-rolling or by extrusion. The item certainly does not come within the sub-entry (21) of entry 43 because it covers only bars and rods. The specific contention of the counsel for the appellant is that the fan hooks are made by bending stainless steel rod w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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