TMI Blog2015 (11) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... tone" even after it is crushed or broken, would continue to be "stone" though it may be named as "boulder", "small stone", "chips", "gitti", etc. Therefore, even bitumen after it is transformed into bitumen emulsion is used in the construction of roads for the qualities it has as bitumen. The characteristics of bitumen in its original form continues even after it is converted into bitumen emulsion by firing upon the raw bitumen. Both the products are used for road and construction and maintenance, water proofing, soil stabilization, etc. The bitumen asphalt and bitumen emulsion are used as binder in road construction and maintenance. In that view of the matter, the orders passed by the revisional authorities holding that bitumen emulsion is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of houses and other works mainly relating to Government Departments. He is a registered dealer under the KVAT Act. The assessee has a taxable turnover under entry tax in a sum of ₹ 2,36,76,940/- regarding purchase of bitumen and machinery. He submitted Form No. 40 for a turnover of ₹ 1,34,11,634/- and paid the taxes regularly. A notice came to be issued by the Assessing Authority in Form No.275 on 14.10.2011, calling upon him to show cause why tax should not be paid for the turnover of bitumen emulsion. The assessee filed his reply. However, the assessment order was concluded and the claim of the assessee was disallowed holding that the bitumen emulsion is a dispersion of bitumen in water or other additives in the same way as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the first appellate authority. After issue of notice to the assessee, after receiving the statement of objections filed and after hearing both parties, he held that, all kinds of petroleum products are liable to entry tax when caused into the local area for the purpose of consumption, use or sale therein. The only excluded items are liquefied petroleum gas (LPG), aviation fuel and kerosene. With the exception of these petroleum products, all other petroleum products are liable to entry tax. It is an undisputed fact that bitumen emulsion is a dispersion of bitumen in water or other additives. Bitumen in its nascent form is emulsified, so that it can be applied at ambient temperature reducing the risk of burn and exposure to car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order contends, Bitumen and Bitumen Emulsion are two different goods. As Bitumen Emulsion is not specifically mentioned in the schedule, the Government has no jurisdiction to levy entry tax on the said goods. In support of his contention, he relied on the judgement of the Madhya Pradesh High Court in the case of Tiki Enterprises and Another-vs-Commissioner of Commercial Tax, Madhya Pradesh, Indore reported in (2010) 27 VST 67 (MP) where after noticing the difference between the bitumen and bitumen emulsion, it was held, bitumen if not mixed with emulsifier, then its use would be difficult and dangerous. Bitumen in its would not absorb or mix with water, but after emulsifier is fired upon the raw bitumen, it is clear that the qual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held, use of bitumen (asphalt) and bitumen emulsion is for one and the same purpose. Bitumen emulsion is used for road and construction and maintenance, water proofing, soil stabilization and in many other special circumstances where cold application of bitumen is desirable. Whereas the bitumen (asphalt) is exclusively used as binder in road construction and maintenance. Therefore, bitumen (asphalt) and bitumen emulsion are used for road construction. Accordingly, answered the substantial question of law in favour of the Revenue and against the assessee. She also relied on a judgement of the Allahabad High Court in the case of M/s. A.R.Thermosets (Pvt.) Ltd. vs Commissioner of Commercial Tax decided in Sales/ Trade Tax Revision No.115 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion that stone even after it is crushed or broken, would continue to be stone though it may be named as boulder , small stone , chips , gitti , etc. Therefore, even bitumen after it is transformed into bitumen emulsion is used in the construction of roads for the qualities it has as bitumen. The characteristics of bitumen in its original form continues even after it is converted into bitumen emulsion by firing upon the raw bitumen. Both the products are used for road and construction and maintenance, water proofing, soil stabilization, etc. The bitumen asphalt and bitumen emulsion are used as binder in road construction and maintenance. In that view of the matter, the orders passed by the revisional authorities holding that bitume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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