Compounded tax classification must follow jaw size, not motor horse power, for crusher machinery under the KVAT Act.

Compounded tax classification under the KVAT Act depends on the production capacity of the crushing machine, and that capacity is determined by the machine's jaw size, not the motor horse power fitted to it. Information from the Mining and Geology Department could not override the statutory criterion where the assessee's declared jaw size was not in dispute. Reassessment orders made on the basis of horse power were therefore unsustainable and were quashed.

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Issues: Whether a crusher used by the assessee could be reclassified for compounded tax purposes on the basis of motor horse power instead of the jaw size criterion prescribed under the KVAT Act.

Analysis: The statutory scheme for compounded tax under the KVAT Act makes the tax payable dependent on the production capacity of the crushing machine, and that capacity is determined by the jaw size of the machine. The power of the motor fitted to the machine is not the criterion stipulated by the Act for classification. Information obtained from the Mining and Geology Department, therefore, could not override the statutory basis for classification where the jaw size declared by the assessee was not in dispute.

Conclusion: The reassessment orders based on horse power were unsustainable and were quashed; the writ petition was allowed.

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