2012 (8) TMI 871

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..... ed the processing activity as a manufacture and sought tax concession under section 5A of the Karnataka Sales Tax Act. The assessing authority found that processing of raw granite does not amounts to manufacturing activity and held that the benefit of concessional tax under section 5A is not entitled to. The assessing authority initiated the proceedings for levy of penalty and accordingly levied the penalty under section 5A(3)(iii) of the Karnataka Sales Tax Act. The provisions of section 5A(3) which is relevant for consideration are extracted for convenient reference.      "5A. Taxation of industrial inputs.-(1) and (2) . . .      (3) If any person-      (i) not having his manu .....

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..... exceeding two and half times the amount of such tax on the inputs so purchased:      Provided that no penalty shall be levied under this sub-section after a period of eight years from the close of the year to which the purchase relates." 2. This court had admitted the appeal to consider the questions of law as mentioned in para 15 of the appeal memo which are as follows:      "(a) Whether in the facts and circumstances of the case it could be held that rough granite blocks and polished granite tiles and slabs obtained from processing of rough granite blocks are different commercial goods in trade parlance, considering the nature of processing involved, character, end-use and the substantial value a .....

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..... ing the penalty order dated March 21, 2005 as in annexure B passed by the assessing authority by considering the same as having been passed under section 5A(2)(v) of the Act and not under section 5A(3)(iii) of the Act is legally justified?      (f) Whether the first respondent is authorized in proceedings under section 22A(1) of the Act to improve or re-write the penalty order as one passed under section 5A(2)(v) of the Act and proceeding to revise the said order under section 22A(1) of the Act?      (g) Whether the impugned revision order dated June 30, 2010 is otherwise legally justified in the facts and circumstances of the case?" 3. After hearing the parties, the following question of law is fr .....

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