9911796707
TMI Blog2021 (1) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... cheduled goods and turnovers relating to sale of other goods was declared as liable to output tax at 12.5% - case of respondent is that iron and steel tees, angles and channels dealt in by the respondent were manufactured out of galvanized steel and they were different from structural steel and the goods therefore, cannot be regarded as iron and steel declared goods specified in Section 14(iv) of the Central Sales Tax Act, 1956 for levy of tax at 4% in terms of Sl.No.30 of third schedule to the Act. HELD THAT:- The levy of tax is permissible under the Act is on the goods as they exist at the time of sale and it is immaterial how the goods are used or to what purpose the goods are put to use by the buyers after purchase - In the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt carries on the business of purchase and sale of steel structural handles, mineral fiber ceiling tiles / boards, PVC floorings, metal ceilings and axioms. The respondent purchased steel structural handles such as tees and channels in the course of import from Steel Rerolling Mills and Suppliers based in China and in India. The aforesaid goods were sold to customers of the State of Karnataka. The respondent declared the turnovers relating to sales of iron and steel tees, angles and channels in monthly returns in Forms VAT-100 as sales of declared goods of iron and steel covered by Sl.No.30 of third schedule to the Act and paid tax at the rate of 4%. The other goods were treated as unscheduled goods and turnovers relating to sale of other g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointing and power quoting and the process renders the commodity to be a commercially different commodity which is no longer classified as iron and steel. 4. The respondent thereupon filed appeals. The first appellate authority by an order dated 07.05.2012 inter alia relied on Entry 7 of Part-S of second Schedule of the Karnataka Sales Tax Act, 1957 pertaining to slotted angles and ready to assemble parts of steel racks and held that the items traded by respondent including main runners and tees are commercially different commodities and therefore, the goods cannot be classified as declared goods. Thereupon the respondent filed an appeal before the Karnataka Appellate Tribunal (hereinafter referred to as 'the tribunal' for short). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n drawn to Section 14(4) of the Karnataka Sales Tax Act, 1957 as well as to Entry 7 Part-S of second schedule of the Act, which deals with slotted angles and ready to assemble parts of steel racks. In support of aforesaid submissions, reliance has been placed on decision of this court in 'STATE OF KARNATAKA VS. STEEL TECH INDUSTRIES', (2014) 75 VST 463 (KARN.). 6. We have considered the submissions made by learned counsel for the parties and have perused the record. The levy of tax is permissible under the Act is on the goods as they exist at the time of sale and it is immaterial how the goods are used or to what purpose the goods are put to use by the buyers after purchase. In the instant case, the respondent had sold steel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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