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2010 (3) TMI 1045 - HC - VAT and Sales TaxWhether the 'resin coated sand' falls under entry 83 of the Third Schedule or under the residual provision under the Karnataka Value Added Tax Act, 2003? Whether the order passed by the Commissioner, Commercial Tax, exercising his suo motu powers vested under section 64(2) would be prospective or retrospective? Held that:- The Advance Rulings Authority without following the judgment of the Tribunal, erroneously has granted an order in favour of the appellant. We are also of the opinion that the Commissioner exercising his power vested under section 64 of the Karnataka Value Added Tax Act having found that, the order of the authority was prejudicial to the interest of the Revenue has rightly exercised his power and ruling of the Commissioner is justified in regard to the classification of the "resin coated sand" under residuary clause. Question No. 1 has to be answered in favour of the Revenue and against the assessee. Based on the clarification of the Advance Rulings Authority with effect from April 1, 2007, the assessee had collected tax at the rate of four per cent only and not at the rate of 12.5 per cent. In view of the same, we have to answer question No. 2 against the Revenue and in favour of the assessee.
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