9911796707
TMI Blog2012 (8) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... der, has filed this appeal. 2. The appellant is the trader in food products such as masala powder, wafers, and confectionery. The appellant is also a dealer of badshah masala powder in the State of Karnataka. The dispute in this appeal is with regard to the payment of value added tax ( VAT , for short) from April 2005 to September 2005. The assessee contends that masala powder falls under entry No. 89 of the Third Schedule and liable to pay VATat the rate of four per cent. The order passed by the revisional authority is contrary to law. 3. This issue is no longer res integra. The Division Bench of this court in a judgment reported in [2010] 29 VST 461 (Karn) in the case of (Sakthi Masala (P) Ltd. v. State of Karnataka) has clearly h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g pre-existing material on record (annexures C and C1); (2) Whether or not respondent No. 2 (first appellate authority) is justified in allowing the appeal on merits considering all the relevant materials available on record (annexure-B); (3) Whether or not respondent No. 1 (revisional authority) is justified in initiating revisional proceedings under section 64(1) ignoring pre-existing material on record without specific jurisdiction and setting aside the speaking order of the first appellate authority and restoring the non-speaking order of the assessing authority (respondent No. 3) (marked as annexure A); 5. It is the case of the Revenue that the dealer of masala powder is liable to pay tax at the rate of 12.5 per cent. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us spices and the condiments in certain preparation is commercially a different commodity liable to be taxed. The honourable Supreme Court in the said judgment has held as under: The ingredients used in preparation of masala after grinding and mixing lose their own identity and character and a new product separately known to the commercial world comes into existence. The sales tax is intended to tax sales of different commercial commodities and not to tax the production or manufacture of particular substances out of which those commodities might have been made. Since separate commercial commodities emerge into existence, they become separately taxable goods or entities for the purpose of sales tax. Therefore, masala powder prepared af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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