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2021 (1) TMI 66 - KARNATAKA HIGH COURTClassification of goods - point of levy of tax - tax to be levied as they exist at the time of sale or based upon how the goods are used or to what purpose the goods are put to use by the buyers after purchase? - steel structural handles, mineral fiber ceiling tiles / boards, PVC floorings, metal ceilings and axioms - 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 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 case, the respondent had sold steel structure of tees, angles and channels in the same form in which goods were purchased and that goods sold by the respondent were not grid systems in any assembled form. This fact was noticed by the prescribed authority itself in paragraph 8 of the order of re-assessment. A bench of this court has already taken a view in Steel Tech Industries [2013 (12) TMI 1496 - KARNATAKA HIGH COURT] that if good acquired are declared goods and it continue to be declared goods even at the time of sale, may be in a different form, the levy of tax should only be as declared goods and not as residuary in nature - From close scrutiny of the judgment passed by the Karnataka Appellate Tribunal, it is found that the tribunal has neither decided any question of law erroneously nor has failed to decide any question of law. Petition dismissed.
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