https://www.taxtmi.com/caselaws?id=187669 Cutting and polishing rough granite blocks was treated as not amounting to manufacture under the Karnataka Sales Tax regime, so the circular could validly reflect that position, but it could not, for the relevant pre-amendment period, treat polished granite as a separate commodity subject to first-sale tax under clause 3(b) because that conflicted with binding precedent. Penalty for use of Form No. 37 and related declarations was unsustainable because the assessment record did not show concealment, false particulars, or mala fide misuse, and the department had itself permitted use of the form for conversion of rough granite into polished granite. The penalty orders were therefore quashed and the circular was interfered with only to the limited extent of the first-sale treatment. en-us Wed, 21 Jun 2006 00:00:00 +0530 Wed, 16 Nov 2016 11:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187669 Cutting and polishing rough granite blocks was treated as not amounting to manufacture under the Karnataka Sales Tax regime, so the circular could validly reflect that position, but it could not, for the relevant pre-amendment period, treat polished granite as a separate commodity subject to first-sale tax under clause 3(b) because that conflicted with binding precedent. Penalty for use of Form No. 37 and related declarations was unsustainable because the assessment record did not show concealment, false particulars, or mala fide misuse, and the department had itself permitted use of the form for conversion of rough granite into polished granite. The penalty orders were therefore quashed and the circular was interfered with only to the limited extent of the first-sale treatment. Case-Laws VAT and Sales Tax Wed, 21 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187669