Plain-language construction limits crusher compounding rates to half the applicable size-based rate, not aggregate rates.

Clarification powers under the Kerala General Sales Tax Act and Kerala Value Added Tax Act are limited to resolving doubt and cannot be used to contradict the statute, the Rules, or create a tax liability not found in the enactment. On a plain reading of the provisions governing compounded tax for primary crushers, the applicable rate is 50 per cent of the rate for the relevant size category, not 50 per cent of the aggregate of rates applicable to other crushers in the unit. The text emphasises that no additional concept such as "aggregate" can be read into the statutory scheme.

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Issues: (i) Whether the Commissioner could, under the power to issue clarification, issue a circular contrary to the statutory provisions governing compounded tax on primary crushers; and (ii) whether the compounded tax payable on a primary crusher under section 7(1)(b) of the Kerala General Sales Tax Act, 1963 and section 8(b) of the Kerala Value Added Tax Act, 2003 is 50 per cent of the respective rate applicable to the primary crusher of the relevant size, or 50 per cent of the aggregate of the rates applicable to other crushers in the unit.

Issue (i): Whether the Commissioner could, under the power to issue clarification, issue a circular contrary to the statutory provisions governing compounded tax on primary crushers.

Analysis: The power to issue clarification under section 59A of the Kerala General Sales Tax Act, 1963 and section 94 of the Kerala Value Added Tax Act, 2003 is only to resolve doubt and remove confusion as to the application of the Act. It does not authorise the Commissioner to contradict the Act or the Rules, or to create a tax liability or rate not found in the statute. Administrative instructions and circulars must remain consistent with the parent enactment and cannot override primary legislation.

Conclusion: The impugned circular, to the extent it departed from the statutory scheme, was without authority and liable to be quashed.

Issue (ii): Whether the compounded tax payable on a primary crusher under section 7(1)(b) of the Kerala General Sales Tax Act, 1963 and section 8(b) of the Kerala Value Added Tax Act, 2003 is 50 per cent of the respective rate applicable to the primary crusher of the relevant size, or 50 per cent of the aggregate of the rates applicable to other crushers in the unit.

Analysis: The relevant Explanations first require the primary crusher to be reckoned for computation of the quantum of compounded tax and then provide that the rate applicable to the primary crusher shall be 50 per cent of the rates mentioned in the size-based items. On a plain reading, this means that the primary crusher is to be taxed at half of the rate applicable to the relevant size category, and not at half of the aggregate of the rates of all other crushers. No word such as "aggregate" is found in the provisions, and nothing permits reading such a concept into them.

Conclusion: The correct construction is that the compounded tax on a primary crusher is 50 per cent of the respective rate mentioned for the applicable size category under the relevant provision.

Final Conclusion: The challenge succeeded, the circular was set aside, the earlier clarification was affirmed as consistent with the statute, and the law on the applicable compounded rate for primary crushers was declared in favour of the dealers.

Ratio Decidendi: A clarification power cannot be exercised to alter or contradict the statute, and a tax provision must be construed on its plain language without adding words or concepts not enacted.

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