9911796707
TMI Blog2014 (4) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... , submits that only the following questions deserve consideration:- (A) Whether on the facts and in the circumstances of the case, the Tribunal as well as the authorities below, in law, were justified in holding that VSATs are not covered by entry 53 in the third schedule to the Karnataka Value Added Tax Act, (for short "the Act") overlooking item No.5 in the Notification dated 06.04.2006 issued by the Government of Karnataka?' (B) Whether the Tribunal and the authorities below were justified in interpreting the relevant entry-5 in the notification dated 06.04.2006, overlooking the Rules for interpretation of the Central Excise Tariff Act, 1985 (for short "the Tariff Act") read with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment orders passed by the Assessing Authority imposing tax for the period between April, 2006 and March, 2007 i.e., for 12 months, including penalty and interest under sections 72(2) and 36 of the Act respectively. 6. The petitioner is a public limited company involved in the business of trading of net working equipments like routers, switches, modems etc., and so also very small Aperture Terminals (for short VSATs'). In the present revision petitions, we are concerned only with VSATs. The petitioner would pay value added tax for the sale of VSATs at the rate of 4% as per section 4(1)(a)(ii) of the KVAT Act r/w Entry 53 of the Third Schedule to the Act, having described it as "IT products including Tele communication equipments a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2006 so as to appreciate the contentions urged on behalf of the petitioner as well as the respondent. The Notification dated 06.04.2006 reads thus:- "NOTIFICATION In exercise of the powers conferred by clause (a) of sub-section (1) of section 4 read with entry 53 of the Third Schedule to the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004), the Government of Karnataka hereby specifies with immediate effect, the goods specified in column (3) of the table below with heading and sub-heading numbers under the Central Excise Tariff Act, 1985 (Central Act 5 of 1986), specified in corresponding entries in column (1) and (2), as IT (Information Technology) products, namely:- Sl. No. Heading and Sub-headin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Tariff Act, 1985, then only those commodities described as aforesaid will be covered by the scope of the notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of the notification. (3) Subject to the Explanation 2, for the purpose of any entry contained in the notification, where the description against any heading or, as the case may be, sub heading, matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered for the purposes of the said tariff under that heading or sub-heading will be covered by the scope of the notification. (4) Where the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ariff, then all the commodities covered for the purposes of said tariff under that heading or sub-heading will be covered by the scope of the notification. 11. In view of the explanations, we have perused the general Rules for interpretation of the first schedule to the Tariff Act. These Rules provide that classification of goods in the first schedule shall be governed by principles mentioned therein. The general explanatory note in the said Rules provide as to how the columns in the first schedule should be read and understood. Additional notes appended to these Rules further make the meaning of words "heading", "sub-heading", "tariff item" etc. clear. 12. We have carefully perused these Rules including general explanatory notes and exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Tribunal and therefore, the Tribunal had no occasion to examine the case of the petitioners, in the light of the Heading 8525 read with sub-heading 8525.20 and tariff item 8525.20.91 and the Rules for interpretation of the first schedule-excise tariff. He also submitted that the commodity involved in the present petition is not covered either by the first notification dated 31-3-2006 or the said notification dated 6-4-2006. 15. Having considered the submission advanced by the learned counsel for the parties and so also the fact that the entries in the Notification and the Central Excise Tariff were not examined by the Tribunal in the light of the rules for interpretation of the first schedule-excise tariff, we are inclined to set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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