TMI Blog2011 (8) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee - S.T.R.P. No. 19 of 2009 - - - Dated:- 11-8-2011 - SABHAHIT V.G. AND RAVI MALIMATH, JJ. For the Appellant : Shivayogi Swamy For the Respondent : Smt. Sujatha and K.S. Girish ORDER:- The order of the court was made by RAVI MALIMATH J. This petition is by the State being aggrieved by the order of the Tribunal allowing the appeal by granting the benefit of reduction at two per cent in the rate of Central sales tax to the assessee. 2. The assessee is engaged in the operation of a solvent extraction plant in Challakere and carries on the business of manufacture and sale of solvent extracted oil. By-products of de-oiled cake and de-oiled rice bran are obtained in the manufacturing process. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o consider the following substantial questions of law: (i) Whether, on the facts and in circumstances of the case, can it be held that the order dated July 12, 2007 passed by the Karnataka Appellate Tribunal in S.T.A. No. 425 of 2006 allowing the appeal is correct and in accordance with law? (ii) Whether, on the fact and in circumstances of the case, can it be held that the Appellate Tribunal was right in law in ignoring that under the KST Act in the Second Schedule in serial No. 1 of Part O. oil cake and de-oiled cake are listed under two separate sub-headings as two different commodities? 4. The Government of Karnataka in exercise of powers conferred by section 8(5) of the CST Act, 1956 issued Notification No. FD 119 CSL 2002 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held that where de-oiled cake remaining after extraction of oil from oil cake purchased, does not lose its identity as oil cake, it cannot be held that oil purchased has been consumed or has ceased to exist as oil cake . Consequently, purchase tax was not leviable on purchase of oil cake. The facts, circumstances and law declared in the said case are totally alien to the facts of the present case. The court was dealing with the levy of purchase tax and as an obiter a passing reference was made. There is no finding recorded in the said judgment that oil cake and de-oiled cake constitutes the same commodity. That oil cake contains a certain percentage of oil and several other ingredients. When these commodities are subjected to processin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be understood in common parlance as understood by a common man is even harder to accept. What a common man understands need not necessarily mean what is understood in accordance with law. In the instant case, the framers of the Schedule were aware of the distinction between oil cake and de-oiled cake. Accordingly, they have treated it as two different commodities. Therefore, to hold that the view of a common man has to necessarily override the view of the Legislature is difficult to accept. The distinction in law has been made which requires to be followed. Oil cake and de-oiled cake are two different commodities. The benefit granted to oil-cake cannot stand extended to de-oiled cake. The impact of the notification reducing the tax impact w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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