Granite stone classification under concessional entry upheld, confirming 5% tax treatment and rejecting a broader exclusion.

Granite stone block and pieces were held to fall within Entry No. 109 of Schedule II Part A under Notification No. KA.NI-2-421/XI-9(1) dated 31.03.2011 and therefore attracted tax at 5%. The entry expressly included "stone" and excluded only glazed stone, marble and marble chips; that specific exclusion indicated that other forms of stone, including granite, remained covered unless expressly removed. The Tribunal's view that unprocessed stone fell within the entry was found consistent with the wording of the notification, and a broader exclusion of granite was rejected. The revenue challenge failed and the classification in favour of the dealer was upheld.

---

---

Issues: Whether granite stone block and pieces sold by the dealer were taxable at 5% under Entry No. 109 of Schedule II Part A pursuant to Notification No. KA.NI-2-421/XI-9(1) dated 31.03.2011, or were liable to be treated as unclassified and taxed at a higher rate.

Analysis: Entry No. 109 specifically included "stone" and expressly excluded only glazed stone, marble and marble chips. The exclusion of those specified items indicated that other forms of stone were intended to remain within the entry unless expressly taken out. The reasoning adopted by the Tribunal, that unprocessed stones would fall within the entry while processed stones would not, was found consistent with the express exclusion of glazed stone. A broader exclusion of granite stone was not warranted when the Legislature had not said so.

Conclusion: Granite stone block and pieces were covered by Entry No. 109 and taxable at 5%. The revision was therefore dismissed against the Revenue.

Final Conclusion: The Tribunal's classification of granite stone within the concessional entry was upheld, and the revenue challenge failed.

---