2009 (3) TMI 966

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....A(4) of the Kerala General Sales Tax Act, 1963. Based on the penalty levied under section 29A(4) the Deputy Commissioner set aside the assessment order and remanded the case back to the assessing officer for fresh assessment after taking into account the penalty levied by the Intelligence Officer. The original assessment was completed on December 1, 1998 and the Deputy Commissioner passed orders under section 35 on June 3, 2002. Revised assessment was completed by the assessing officer pursuant to the orders issued by the Deputy Commissioner on May 29, 2005. While revising the assessment pursuant to order issued under section 35 by the Deputy Commissioner, the assessing officer revised the rate of tax on pipe fittings used for sanitary purp....

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....ply and in sanitary equipment and fittings. The question to be considered is whether the item would come under the Second Schedule, item 2(k), which provides for steel tubes, both welded and seamless, of all diameters and lengths including tube fittings. We do not think G.I. pipe fittings fall under entry 2(k) because the items referred to therein are only steel tubes and tube fittings. Galvanised iron pipes and pipe fittings are steel pipes and fittings coated outside and inside with zinc to make it rust-proof. Steel tubes and galvanised steel tubes are different products. Similarly tube fittings when galvanised, i.e., on coating with zinc become commercially different and there is substantial value addition in the process of galvanisation....

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....on whatsoever on the assessing officer. The counsel for the petitioner submitted that even though in the operative portion of the order of the Deputy Commissioner he does not talk about the revision in assessment called for, the assessment has to be revised based on his findings in the order. The ground for setting aside the assessment under section 35 by the Deputy Commissioner was the penalty levied on the petitioner under section 29A(4) which was not noticed by the assessing officer while completing the assessment. The penalty levied under section 29A(4) is for attempting evasion of tax in respect of transport of goods without being accompanied by documents or with documents which are defective. In any case if an attempt of evasion of ta....