TMI Blog2023 (1) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... under respective headings and sub-headings in the Central Excise Tariff Act, 1985 as IT Products. Admittedly, Central Excise has accepted clearance of EV Machines under Tariff Head 8471. Therefore, the principal contention of Revenue that an EVM does not process anything, is untenable because, the KVAT Authority is bound by the classification accepted by the Central Excise Authority. Petition dismissed. - S.T.R.P No.102 OF 2018 - - - Dated:- 2-12-2022 - HON BLE MR. JUSTICE P.S. DINESH KUMAR AND HON BLE MR. JUSTICE UMESH M. ADIGA PETITIONER (BY SHRI. DHYAN CHINNAPPA, AAG A/W SHRI. JEEVAN J. NEERALAGI, AGA) RESPONDENT (BY SHRI. G. SHIVADASS, SENIOR ADVOCATE A/W SHRI. SYED M. PEERAN, ADVOCATE) ORDER P.S. DINESH KU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electronic Warfare systems, Naval systems, Avionics, Defence Communication Equipment, Solar products, Electronic Voting Machines (EVM) etc. 3. The Deputy Commissioner of Commercial Taxes(Audit), the Assessing Authority, concluded the re-assessment vide order dated February 25, 2016 under the KVAT Act (Karnataka Value Added Tax Act, 2003) and under Section 9(2) of the CST Act (Central Sales Tax Act, 1956) read with Section 36 72(2) of the KVAT Act in respect of local and Interstate sales turnover of assessee's products sold to various entities including Election Commission of India and Controller of Defence Accounts. The Assessing Officer held that the commodities are taxable at 14.5% under the KVAT Act and not at 5.5%. 4. Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct after providing opportunity to the assessee. Hence, this appeal. 6. Assailing the impugned common order, Shri. Dhyan Chinnappa, learned Additional Advocate General urged following two contentions: the assessee has claimed concessional rate of tax in respect of EVMs on the ground that the item is classifiable as Atomatic Data Processing Machines (APDMs) under entry 8471 of the Central Excise Tariff Act specified in Entry 4 of Notification No. FD 116 CSL 2006(9) dated March 31, 2006. But, the EVM is a machine to automate the election and voting process by application of technology. Its primary function is to assist in registering, counting and computing the Votes. It is held in Commissioner of Customs, Bangalore Vs. NI Systems ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reference and what is relevant is the technical and scientific meaning. 9. With these main submissions, he prayed for dismissing the petition. 10. We have carefully considered rival contentions and perused the records. 11. In substance, Revenue's case is that EVMs do not fall under CTH-8471 dealing with Automatic Data Processing Machines because, the Control Unit is incapable of processing digital data unless specific software is written for such processing and Control units but have specialized structure and specific functions to perform. Therefore, an EVM cannot be classified under CTH-8471. 12. Assessee's case is, it has been clearing the product namely the Display-cum-Processing Cabinets by classifying them unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with the requirements of the user; (iii) performing arithmetical computations specified by the user; and (iv) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run. (Emphasis Supplied) 16. The KAT has rightly recorded in para K12 that an ADPM is a machine capable of storing the processing programs or the data necessary for execution of program being freely programmed in accordance with the requirements of the user, performing user specified Arithmetical computations and executing without human intervention. It has further held that the Display cum Processing cabinet is intended to integrate display processing and signal pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve carefully perused the Notification FD 116 CSL 2006(9) dated March 31, 2006 and it reads as follows: In exercise of the powers conferred by clause (a) of sub-section (1) of section 4 read with entry 53 of the Third Schedule to the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) and in supersession of Notification No.FD 197 CSL 2005(7), dated 30th April, 2005, the Government of Karnataka hereby specifies with effect from the first day of April, 2006, the goods specified in column (3) of the table below with heading and sub-heading numbers under the Central Excise Tariff Act, 1985 (Central Act 5 of 1986), as IT (Information Technology) products, namely:- 22. Thus, the Notification makes it clear that the goods speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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