1995 (10) TMI 214

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....to be briefly stated to appreciate the grievance of the appellants in these two appeals.   2.. The appellants are registered dealers under the Karnataka Sales Tax Act and are dealing in purchasing "leco" from Neyveli Lignite Corporation. Leco is not mentioned in any of the entries in the Schedules of the Karnataka Sales Tax Act. However, over the years leco was considered as coal subject to duty under entry 1 of the Fourth Schedule to the Act. The entry reads as under?: "Coal including coke in all its forms but excluding charcoal." The assessments of the appellants were completed for all years prior to assessment order 1988-89 by subjecting leco to duty at 4 per cent in accordance with rate prescribed under entry 1 of the Fourth ....

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....se of Ratanchand Jain [1992] 85 STC 470. The appellants are challenging the legality of the order. 3.. The learned counsel appearing on behalf of the appellants submitted that the circular issued by the Commissioner was under misconception that this Court had held that leco is equivalent to charcoal. It was urged that leco is not a charcoal but falls under entry 1 of the Fourth Schedule, i.e., coal in all its form but excluding charcoal. The learned counsel submitted and in our judgment, with considerable merit, that charcoal is manufactured from burning wood while leco is part of coal which comes from coal field. The distinction between the coal and leco is that leco is not a refined article, while the coal is one, but both coal and lec....