Sales tax classification turns on goods as sold, not later use; declared goods kept concessional treatment.

Steel tees, angles and channels were treated as declared goods taxable at the concessional rate because classification under the Karnataka Value Added Tax Act depends on the character of the goods at the point of sale, not on their later use by the buyer. The goods were sold in the same form in which they had been purchased, and there was no proof that they were sold as assembled grid systems. The court therefore rejected treatment of the goods as commercially different unscheduled goods liable to the residuary rate, and the Tribunal's relief to the dealer was sustained.

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Issues: Whether steel tees, angles and channels sold by the dealer were declared goods taxable at the concessional rate under the Third Schedule to the Karnataka Value Added Tax Act, 2003, or whether they were commercially different unscheduled goods liable to tax at the residuary rate.

Analysis: Tax liability under the Karnataka Value Added Tax Act, 2003 attaches to the goods as sold, and their subsequent use by the purchaser is irrelevant. The goods in question were sold in the same form in which they had been purchased and were not shown to have been sold as assembled grid systems. A prior view had also recognised that where the goods remain declared goods at the time of sale, tax cannot be levied on a residuary basis merely because of the manner in which they may later be used.

Conclusion: The goods retained their character as declared goods and were not liable to be treated as commercially different unscheduled goods.

Final Conclusion: The revision failed and the order of the Tribunal granting relief to the dealer was sustained.

Ratio Decidendi: Classification for sales tax purposes depends on the character of the goods at the point of sale, and not on their subsequent use or intended application by the buyer.

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