TMI Blog2016 (3) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... ow. - Decided in favor of assessee. - Civil Appeal No(s). 503-504/2006 - - - Dated:- 4-3-2016 - MR. A.K. SIKRI AND MR. ROHINTON FALI NARIMAN, JJ For the Petitioner : Mr. Sanjay Kumar, Adv., Mr. R.N. Keswani, Adv. For M/s Keswani Co. For the Respondent : Mr. V. N. Raghupathy,Adv. ORDER The appellant/assessee is the manufacture of bricks and tiles. It is registered under the Karnataka Sales Tax Act (hereinafter referred to as the Act ) and is paying sales tax on the goods manufactured and sold by it. For the relevant Assessment Year i.e. 1993-94, the appellant/assessee filed its sales tax return in respect of the roofing tiles as well as decorative roofing tiles. As per the appellant since roofing tiles are conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 31-3-96 Fifteen percent 1-4-96to 31-3-98 Twelve percent From 1-4-98 (Ten percent) (v) Jointing powder (other than cement) and situ-mixture for laying tiles and chips specified above. 1-4-88 to 31-3-95 Thirteen percent 1-4-95 to 31-3-96 Fifteen percent From 1-4-98 (Ten percent) A reading of the aforesaid Entry would indicate that in sub-heading (i), (ii) and (iii) there are specific kinds of tiles mentioned therein which attract a particular percentage of sales tax mentioned against those. If the goods/tiles are not covered by sub-entries (i),(ii) (iii), then the residual entry namely sub-entry (iv) of Entry 8 would be applicable. The reading of the aforesaid ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture, when the assessment records are pursued, it revealed that the appellant has purchased only fuel, firewood and saw dust. Which has been promptly assessed under Section 6? There is no purchase of furnace oil or fireclay. In the absence of these items, it should be concluded that the appellant has not manufactured decorative tiles or glazed tiles. The raw materials purchased and firewood is consumed for the manufacture of roofing tiles. Firewood which has been purchased and assesses under Section 6 will not generate 1200 degree to 1300 degree centigrade which is required to manufacture decorative tiles. 22. Further, the description of the tiles given by the appellant in case of weather proof tiles W-tiles flooring tiles, Spanish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion here would be as to whether the tiles manufactured by the assessee fall within the description contained in sub-entry (iii). Insofar as this aspect is concerned, it has been decided in favour of the appellant by the authorities themselves. Once that determination is held in favour of the assessee, no further inquiry which is not germane to the issue would be permissible. We are , thus, of the opinion that the goods manufactured by the appellant are covered by sub-entry (iii) of Entry 8 Part T of the Second Schedule on which only 5% sales tax is payable and not 15% as held by the authorities below. These appeals are, accordingly, allowed and the impugned judgment of the High Court is set aside. - - TaxTMI - TMITax - CST, VAT & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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