TMI Blog2012 (8) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 1(b) of Section 4 of the Act. - Decided in favour of assessee. - STA No.36/2010 - - - Dated:- 30-8-2012 - MR. K.SREEDHAR RAO , MR. B.MANOHAR JJ FOR THE APPELLANT :-SRI.H.N.SREENIVASA RAO, ADV FOR THE RESPONDENT :-SMT.S.SUJATHA, AGADAY, JUDGMENT Appellant is a registered dealer under the Karnataka Valued Added Tax, 2003 (hereinafter referred to as 'the Act') engaged in the business of Gummed or Adhesive Paper or Paper Board called Post-it-Paper and Scotch-Magic-self-Adhesive Tape . He made an application before the Authority for Clarification and Advance Ruling (hereinafter referred to ACAR) seeking for clarification with regard to the rate of tax in respect of the business carried on by the appellant in 'post-it-paper' and Scotch-Magic-Self-Adhesive Tape. 2. The appellant has contended that it is a self-adhesive rolls not exceeding 20cm falls under Entry 69(i) of the III Schedule to the Act ('entry 69(i) for short). In order to clarify the doubt, he filed an application seeking for clarification from ACAR. ACAR, by its order dated 17-11-2006 held that post-it-paper falls under the category of non-scheduled goods and liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in law to hold 'post-it-paper' as not paper and considering it as a distinct commercial commodity from paper of all kinds? iv) Whether in the facts and circumstances of the case, the order of the respondent is sustainable in law? 4. Sri.H.N.Srinivasa Rao, learned counsel appearing for the appellant contended that the order passed by the Commissioner for Commercial Taxes is contrary to law. The appellant contends that he imports jumbo rolls of different colour and rolls of papers contain strips of adhesive on one side. These are meant for converting into 'post-it-paper' by cutting into different sizes. The sheets and rolls of paper contain strips of adhesive on one side. The paper sheets are cut into long pieces by mechanical system, long paper then cut into the required size and prepare Post-it-Paper. While importing the said paper, customs department treated it as paper and duty has been paid. The Commissioner has accepted it as paper. Entry 69(i) of the Act includes all kinds of paper without stipulating the use or utility to which the said papers are put to use. The Entry 69(i) covers all kinds of papers except photographic paper. Just because adhes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of 12.5% under Section 4(1)(b). Insofar as Scotch Magic Self-Adhesive Tape is concerned, it falls under Entry 143 of the notification dated 30th September 2005 and liable to be taxed at the rate of 4% under Section 4(1)(a)(ii) of the Act. The application seeking for review was also rejected by the ACAR. Being aggrieved by the said order, the appellant preferred STA No.10/2000 before this Court and this court quashed the order passed by the ACAR and remanded the matter to the Commissioner to reconsider the same whether the paper is known as 'post-it-paper', which contains adhesive on one side of the paper which will be generally used as a 'flag' and used for writing purpose falls under Entry 69(i) of the III Schedule. The Commissioner after examining the matter held that by cutting the paper into different sizes with the adhesive, a new commercial commodity distinct from the paper which cannot fall under Entry 69 and Entry 71 of the Act. Hence the said commodity has to be regarded as an unscheduled item liable to be taxed under sub-Section 1(b) of Section 4 of the Act. The said order has been questioned in this appeal. 8. Entry 69(i) of the III Schedule covers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gnificance. On the face of it is indicates that all items mentioned in sub-entry (1) are also kinds of paper including particulars kind of cards and boards mentioned in the sub-entry and sub- entry(2) covers paper of all other kinds , i.e., other than the kinds of paper covered by sub- entry(1). If that is so, there is no good reason why mill board should not be taken as covered by the expression all other kinds of paper xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx The normal function of the word including in an entry, to our mind, is to indicate that the items following the work including are though of the type of the main item in the entry, there could be some doubt as to whether the main entry covered them or not and, therefore, the legislature specially mentioned those items in the entry to remove scope for any doubt. In other words, the items so included with the prefix including would be of the type about which there could be some doubt as to whether they are covered or not by the main entry. The item about which there is no scope for doubt or there is comparatively less scope for doubt would accordingly stand automatically covered by the main items in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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