9911796707
TMI Blog2012 (9) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... t parts or input, the assessee is liable to pay tax at the rate of four per cent. Hence, the judgments relied upon by the respondent are not applicable for the present case and the order passed by the Appellate Tribunal cannot be sustained. The substantial questions of law framed in this revision petition are held in favour of the Revenue. Accordingly, Appeal is allowed. The order passed by the Karnataka Appellate Tribunal is set aside insofar as deduction of entry tax in respect of diesel is concerned. - CRP No. 332 of 2010 - - - Dated:- 4-9-2012 - SREEDHAR RAO K. AND MANOHAR B. ,JJ. For the Appellant : Smt. S. Sujatha, Additional Government Advocate, For the Respondent : M.N. Shankaregowda and B.K. Manjunath for Vasan Associ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Notification No. FD 37 CET 2000(5), Bangalore, dated March 31, 2000 held that the assessee is liable to pay entry tax at four per cent insofar as diesel and furnace oil are concerned. Accordingly, a demand notice was issued as per the assessment order dated August 23, 2003. The assessee being aggrieved by the said order preferred an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Division-2, Bangalore. The appellate authority after considering the matter in detail held that the diesel and furnace oil cannot be treated as raw materials for the purpose of manufacturing the cement. Hence, the assessee is liable to pay entry tax. Accordingly, dismissed the appeal by its order dated July 26, 2004. Being aggrieved by the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellate Tribunal is contrary to law. The Appellate Tribunal misunderstood and misread the various Government Notifications, which were issued under section 3(1) of the KTEG Act. Though the State Government by its Notification No. FD 39 CET 98(1) dated May 14, 1998 deleted the diesel from the notification dated March 31, 1998, subsequently State Government by its notification bearing No. FD 37 CET 2000(3) dated March 31, 2000 imposed entry tax at the rate of four per cent on diesel and furnace oil. Further the State Government by its notification bearing No. FD 37 CET 2000(5) dated March 31, 2000 clearly held that even if the goods specified in the Notification No. FD 37 CET 2000(3) dated March 31, 2000 brought as raw materials, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for generating electrical energy as raw materials which are not liable to entry tax in view of the fact that they are used to manufacture the electrical energy, which also finds entry in the Second Schedule. He also relied upon a judgment of the honourable Supreme Court reported in [2007] 5 VST 529 (SC) in the case of Commercial Taxation Officer, Udaipur v. Rajasthan Taxchem Ltd. Hence, there is no infirmity in the order passed by the Karnataka Appellate Tribunal and sought for dismissal of the revision petition. 5. The substantial questions of law that arise for consideration in revision petition are: (i) Whether the Karnataka Appellate Tribunal is justified in relying upon the Notification No. FD 34 CET 98(1) dated March 31, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FD 37 CET 2000(6) dated March 31, 2000. However, the Notification No. FD 37 CET 2000(3) dated March 31, 2000 specifies the rate of tax at four per cent with effect from April 1, 2000. The dispute in this revision petition is with regard to the assessment year 2000-01 and the notification dated March 31, 2000 covers the field. 7. Further the State Government by its Notification No. FD 34 CET 98(2) Bangalore dated March 31, 1998, fixed the rate of tax at one per cent on raw materials, component parts and input which are used in the manufacture of intermediate or finished products other than those specified in the Second Schedule. This notification was amended by another Notification No. FD 37 CET 2000(5), Bangalore dated March 31, 2000 wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods as per entry 67 of the First Schedule to the Act. The assessee is manufacturing cement. The assessee has caused entry of diesel for generating electrical energy and for running the earthmovers for shifting the limestone to the respondent's factory from the adjoining quarries. As per the notification extracted above, even though the diesel which was brought in as a raw material is liable to be taxed at the rate of four per cent, these aspects of the matter are totally lost sight by the Karnataka Appellate Tribunal. The judgment relied upon by the M.N. Shankaregowda are not applicable to the facts of this case. In Kirloskar Power Supply's case [2006] 61 KLJ 214, the diesel was brought into the local area for the purpose of genera ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
