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TMI Blog2018 (11) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. The budget speech for the assessment year in which there was introduction of VSI/HSI also under the compounding scheme, has also been relied on to further buttress the intention of the legislature in having provided the coverage under the scheme only prospectively from the assessment year 2014-15. 4. We have heard the learned Senior Counsel Sri Raju Joseph, Sri. T.M. Sreedharan, Senior Counsel, Sri. Harisankar V Menon, Dr.George Abraham, Sri K.I Mayankutty Mather, Sri. K.T Poulose, Sri. N. James Koshy, Smt. R.Leela, Sri.Philip J Vettickattu, Sri. Mathew A Kuzhalnadan and Sri.S.Sreedev for the appellants and the learned Special Government Pleader Sri. C.E Unnikrishnan for the State. 5. Section 8 has been extracted by the learned Single ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sand was also found to be a product that is obtained in the process of production of granite metal using mechanised crushing machines. It was specifically held that the mere fact that a dealer had obtained a different type of machine for production of a finer size of granite metal or sand was of no consequence. We agree with the findings; on the legislative scheme envisaging the payment of compounded fee on the basis of the number of primary and secondary crushers used within a crusher unit. A different type of machine not specifically noticed by the legislature, if and when used by the crusher units, to produce the same product but of a different constitution, for which no separate compounding fee was provided; would not by such user alone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te metals whether it be from the machines as specified in Clause (b) or otherwise. The compounding scheme also is for the dealers or the crushing units and on option exercised, they are absolved from regular assessment of the goods produced in the crusher units whether it be larger or smaller aggregates of granite metal or M-Sand by a VSI/HSI. 9. We also notice that the legislature having found that there is a loss of tax insofar as the M- Sand produced by a different machine had from the assessment year 2014-15 provided a compounding fee for the VSI/HSI. The provision so introduced was also on the following reasoning as available in the budget speech of the Finance Minister: "Due to scarcity of river sand, the new product called manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also see any reason to sustain the distinction sought to be drawn between M-Sand and manufactured sand. M-Sand as it is generally understood is manufactured sand produced from quarried metals. In common parlance as also in commercial parlance M-Sand is manufactured sand produced from metals, as distinguished from natural sand. 11. We have also seen Poabs Granite P.Ltd. (supra) which decision was under the general sales tax regime. The compounding provision under the general sales tax enactment did not have a provision for exemption as is available in the KVAT Act. Even then a Division Bench of this Court found that there could be no separate assessment for manufactured sand produced from a different machine when such machine was not includ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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