TaxTMI 
TaxTMI 
2010 (6) TMI 688
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....ng substantial question of law: Whether in the facts and circumstances of the case, the respondent-authority was justified in holding that ammonia in aqueous solution is chargeable at 12.5% although ammonia in aqueous solution is nothing but ammonia anhydrous mixed with water? 2. The relevant facts leading to filing of this case are that the appellant who is the dealer in supplying Ammonia, Anhydrous and Aqueous Solution which is registered under the provisions of Karnataka Sales Tax Act, 1957 and is also currently registered under the KVAT Act, filed an application before the Authority for Advance Ruling by seeking a clarification as to whether the product "Ammonia Anhydrous" and "Ammonia Aqueous Solution" are one and the same and if....
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.... product and the purpose for which water has been added in order to convert ammonia anhydrous into aqueous solution and hence, the said order is bad in law. 5. Per contra, learned Addl. Government Advocate supporting the said order has relied upon the affidavit filed by the Asst. Commissioner of Commercial Taxes to contend that ammonia anhydrous and ammonia in aqueous solution are two different products and that their utility are for different purposes. That by virtue of the earlier notification dated 23-3-2005, the same rate of tax was applicable to both products, but by subsequent notification dated 30-4-2005 there is a definite intention to omit ammonia in aqueous solution from the said notification as per Sl. No. 44 and hence, the Au....
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....mber 35 of the Third Schedule of the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) and in suppression of Notification No. FD 55 CSL 2005(8), dated 23rd March, 2005 the Government of Karnataka hereby specifies with effect from the first day of May, 2005, the goods specified in column(3) of the table below with heading and sab-heading numbers under the Central Excise Tariff Act, 1985 (Central Act 5 of 1986) specified in column (2), as industrial inputs and packing materials, namely :- Sl. No. Heading and Sub-heading DESCRIPTION (1) (2) (3) 1 - - 2 - - 44 2814.10.00 Ammonia, Anhydrous 45 Explanation . (1) The Rules for the interpretation of the Central Exci....
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....uct is "ammonia and anhydrous." From the same it is apparent that the words "aqueous solution" which were present in notification dated 23-3-2005 are excluded or deleted in the notification dated 30-4-2005. It is also relevant to note that a reference is made to the serial number corresponding to Chapter 28 of the Central Excise Manual, wherein at 2814.10.00 reference is made only to "anhydrous ammonia", whereas in the said Central Excise Manual "ammonia in aqueous solution" is also referred to as 2814.20.00. In this context, it would be of relevance to note that explanation (2) and (3) categorically mention that only if the headings mentioned in the notification issued under the KVAT Act matches fully with the corresponding explanation in ....