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2014 (2) TMI 51 - KARNATAKA HIGH COURTLevy of tax on sale of copper - Whether in respect of contract work of insulation in respect of copper wire furnished by the customer, tax could be levied under residuary entry 4(1)(b) of the K.V.A.T. Act, 2005 - Held that:- If the assessee was in the business of sale of insulated copper wire, then the said notification applies. Admittedly, in the instant case, the assessee is not selling the copper wire. He receives the copper wire from the customers, uses enamel, fiberglass yarn and paper and converts it into insulated copper wire and delivers the finished product to the customer. In the process, what is sold is enamel, fiberglass yarn and paper. These are the three materials which are used in the manufacturing process to convert copper wire into insulated copper wire. There is no separate entry in the Schedule prescribed for the tax leviable for these three items. Thus, residuary clause is invoked and 12.5% is charged. In the facts of this case, we do not find any justification to interfere with the orders passed by the Tribunal - Decided against assessee.
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