TaxTMI 
TaxTMI 
2004 (4) TMI 568
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...., 1994 respectively. The petitioner had several grievances in regard to the orders of assessment, two of which are relevant in these revision petitions: (i) taxing of Shrinkkomp as "cement" at 13 per cent as falling under entry 7 of part "C" of the Second Schedule to the Act; and (ii) subjecting the turnover relating to charges for packing material specified and charged by the assessee separately (without including it in the price of goods) to turnover tax under section 6B of the Act. The petitioner therefore filed appeal Nos. KST AP. Nos. 74/1994-95 and 91/1994-95 before the First Appellate Authority in regard to its grievances. The appellate authority confirmed the findings of the assessing authority in regard to thos....
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.... shrinks, Shrinkkomp binds and expands. Shrinkkomp is also manufactured in cement factories and sold by dealers in cement. It is nothing but a cement used for special purposes as contrasted from portland cement which is used for general purposes. It was also pointed out that in common parlance, the persons in the trade consider Shrinkkomp and other similar grouting material as a special cement. They submit that Shrinkkomp is nothing but a brand name given by the assessee to expansion cement or grouting material. The department contends that entry 7 takes into its hold, all cements and is not restricted only to portland cement. The word "cement" in its general sense covers a wide variety of binding materials used for many differ....
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....l holes, etc. Expanding and non shrinking cements is contrasted from portland cement which shrinks on hydration. Expanding and non-shrinking cements expand slightly on hydration, thus offsetting the small contraction that occurs when freshly made concrete dries for the first time. One standard method of producing expanding and non-shrinking cements is to mix portland cement with an expansive agent made by clinkering a mix of chalk, bauxite and gypsum (vide The new Encyclopaedia Britannica, 15th Edition, Volume 3 page 19 and Volume 21, pages 293 to 297). Assigning a specific brand name does not take away the basic nature of goods. A car does not cease to be a car by calling it "Maruthi" or "Mercedes". An expansion ceme....
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....any portion of such turnover is liable to tax under any other provisions of this Act, shall be liable to pay tax,-- (i) if it is a body corporation,-- (a) at the rate of one and a quarter per cent of its total turnover, if his total turnover is not less than five lakh rupees but is less than two hundred and fifty lakh rupees in a year, or (b) at the rate of one and a half per cent of his total turnover if its total turnover is not less than two hundred fifty lakh rupees in a year; (ii) . . . Provided that no tax under this sub-section shall be payable on that part of such turnover which relates to,-- (i) to (vi) . . . (vii) all amount falling under the head 'charges for packing materials and cost of labour', when specified an....
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....and by the Tribunal. It is clear from a series of decisions of this court that section 6B is an independent charging section providing how the total turnover (for identifying the classes of traders) and taxable turnover (for purposes of levying turnover tax) should be determined. The principles contained in section 5 of the Act relating to levy of sales tax and purchase tax, etc., will not apply for determining the turnover that has to be taxed under section 6B of the Act. Similarly, the deductions provided in rule 6 of the Karnataka Sales Tax Rules, 1957, cannot be applied in determining the total turnover for the purpose of section 6B. (vide decision of the Supreme Court in S. Kodar v. State of Kerala [1974] 34 STC 73, decisions of the D....
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....e rate of tax and the point of levy applicable to turnover of such containers or packing materials, as the case may be, shall, whether the containers or the packing materials have already been subjected to tax under this Act or not or whether the price of the containers or of the packing materials is charged for separately or not, be the same as those applicable to goods contained or packed: Provided that no tax under this sub-section shall be leviable if the sale or purchase of goods contained in such containers or packed in such packing materials is exempt from tax under this Act." Learned Government Advocate submitted that as the section starts with a non-obstante clause, even, for the purpose of interpreting section 6B also, cost....