Classification of Kattal Gitti as grit up to 90 mm upheld for lower tax treatment under the Schedule II entry.

Stone broken into small pieces after blasting was treated as grit where the size was up to 90 mm, bringing "Kattal Gitti" within the Schedule II entry taxable at 4%. The Tribunal's view was accepted because gitti, kankere and stone ballast were regarded as the same class for tax classification purposes. Pieces exceeding 90 mm were outside that entry and would be treated as unclassified; on the stated facts, the Department's challenge failed and the 4% classification stood.

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Issues: Whether "Kattal Gitti" of 90 mm size or less is covered by the entry relating to grit in Schedule II and taxable at 4%, or is to be treated as an unclassified item taxable at 12.5%.

Analysis: The dispute concerned the proper classification of stone broken into small pieces after blasting. The Tribunal had held that grit and "Kattal Gitti" were of the same class because the size was up to 90 mm, and therefore fell within the relevant entry attracting tax at 4%. The Court accepted that view, noting that the Supreme Court had already treated gitti, kankere and stone ballast as falling within the same classification for tax purposes. On the facts, pieces up to 90 mm were regarded as grit, while pieces exceeding that size would fall outside the entry and be treated as unclassified.

Conclusion: "Kattal Gitti" up to 90 mm was correctly held taxable at 4% under the grit entry, and not as an unclassified item at 12.5%; the Department's challenge failed.

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