TaxTMI 
TaxTMI 
2014 (4) TMI 178
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....ed at Annexure-E and for consequential relief. 2. Mr. S.V. Girikumar, learned AGA has taken notice for the respondents. 3. Heard both sides. The matter is taken up for final disposal. 4. From the material propositions in the petition, it is not in dispute that the petitioner is a dealer registered under the KVAT Act and is dealing with machinery and other equipment which, according to it, was liable for tax at different rates under six Schedules apart from the general rate of taxation. 5. Petitioner relies on the Third Schedule to the Act which particularizes certain goods chargeable at with reduced rate 5% with effect from 1.4.2010. Petitioner claims it is dealing with capital goods referred to in the Third Schedule which goods....
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....ate of service of notice. Hence, a re-assessment notice under Sections 36(1), 39(1) and 72(2) of the KVAT Act for the said period was issued, and as there was no compliance to the earlier notice, the proceedings proceeded and after taking into consideration all actuals and factuals, the 2nd respondent passed the re-assessment order vide Annexure- E levying tax on the machinery sold by the petitioner company at a higher rate. Annexure-E would show the tax liability is fixed at more than 5% and thus consequently the assessee is saddled with liability to pay penalty equal to 10% of the difference between tax payable and tax paid as per the returns of turnover and under Section 72(2) of the Act. 9. Of course the notice was issued on 21.8.201....
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.... 'Without prejudice to the generality of the foregoing power, the Commissioner may, on his own motion or on an application by a registered dealer liable to pay tax under the Act, if he considers it necessary or expedient so to do, for the purpose of maintaining uniformity in the work of assessments an collection of revenue, clarify the date of tax payable under this Act in respect of goods liable to tax under the Act, and all officers and persons employed in the execution of this Act shall observe and follow such clarification.' it is binding in nature. There can be no two opinions on it. But the question is, whether the goods which are the subject of sale and liable to tax fall within the category of earth moving machinery or are m....
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.... by the Commissioner while deciding the grounds for rectification. Hence he submits, if the 2nd respondent had taken into consideration the clarification issued by the commissioner, the opinion would have been different than what he has reached. 15. Dr. Girikumar, AGA, would submit 2nd respondent has referred to the undisputed fact that the type of goods sold are vehicles and hence clarification issued by the Commissioner will not accrue to the benefit of the petitioner. The clarification deals only with earth moving machinery and accessories whereas the goods sold by the petitioner are earth movers mounted on vehicles registered under the Motor Vehicles Act. He submits, there is no error in the impugned order nor there is any worthy gro....