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2022 (12) TMI 1329 - HC - VAT and Sales TaxClassification of goods - rate of GST - denatured Anhydrous alcohol is a kind of Ethyl alcohol or not - HELD THAT:- Section 3 of the KTEG Act deals with levy of tax and it specifies that “tax shall be levied and collected on the entry of any goods specified in the First Schedule into a local area for consumption, use or sale therein at such rates not exceeding 5% of the value of the goods as may be specified retrospectively or prospectively by the State Government by Notification, and different dates and different rates may be specified in respect of different goods or different classes of goods of different local areas”. In other words, the tax can be levied only by issuing a notification and not otherwise. The notification dated 30.04.1992 issued by the Government of Karnataka in exercise of powers conferred under section 3(1) of KTEG Act, tax was levied at the rate of 2% on denatured spirit, rectified spirit and ethyl alcohol. The notification dated 31.03.1997 provided for levy tax on denatured spirit at the rate of 4%. Thereafter, a notification dated 15.02.2001 was issued exempting payment of tax on denatured spirit and also in the subsequent notification dated 30.03.2002. These notifications are not disputed by the State Government which provides for exemption from payment of tax on denatured spirit under notification dated 30.03.2002 issued in exercise of powers under section 3(1) of the KTEG Act. The levy of tax on denatured spirit have been omitted and the petitioner is not liable to pay tax for the period 2007-08 and 2008-09 and levy or payment of tax on denatured spirit is exempted. The levy of tax is for the period 2007-08 and 2008-09 and for the said period, there was no notification issued under section 3(1) of the KTEG Act levying entry tax on the denatured spirit. Hence, the petitioner is not entitled to pay the entry tax on the denatured spirit for having purchased, manufactured or supplied it to the various petroleum companies for the said period. Accordingly, the writ petition is allowed and the clarification dated 10.02.2009 issued by the respondent No.2 at Annexure-C is hereby quashed. Petition disposed off.
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