TaxTMI 
TaxTMI 
2010 (3) TMI 1045
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....e 'resin coated sand' falls under entry 83 of the Third Schedule or under the residual provision under the Karnataka Value Added Tax Act, 2003? (ii) Whether the order passed by the Commissioner, Commercial Tax, exercising his suo motu powers vested under section 64(2) would be prospective or retrospective? 3. Heard the learned counsel for the parties. 4. The facts leading to this case are as hereunder: The appellant is engaged in the business of selling "silica sand" and "resin coated sand". Considering the doubt entertained by him in regard to the rate of tax on the "resin coated sand", the assessee approached the Authority for Clarification and Advance Rulings, under section 60 of the Karnataka Value A....
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....a serious error in giving effect to its order with effect from June 7, 2005 by reversing the order passed by the Authority for Clarification and Advance Rulings under section 60 of the KVAT Act. He contends that the order of the Commissioner has to be prospective in nature and it cannot be retrospective in nature. In the circumstances, he requests the court to allow the appeal. 6. Per contra, Smt Geetha Menon, learned High Court Government Pleader appearing for the respondent submits that, the "resin coated sand" is entirely different from original sand. Therefore, it falls under residual clause attracting the rate of 12.5 per cent. The Advance Rulings Authority, even though, was aware of the decision of the Karnataka Appellate Tribunal in....
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....ty without following the judgment of the Tribunal, erroneously has granted an order in favour of the appellant. We are also of the opinion that the Commissioner exercising his power vested under section 64 of the Karnataka Value Added Tax Act having found that, the order of the authority was prejudicial to the interest of the Revenue has rightly exercised his power and ruling of the Commissioner is justified in regard to the classification of the "resin coated sand" under residuary clause. So far as the second point is concerned, we are of the opinion that the order of the Commissioner cannot be retrospective and it could be prospective only for the following reasons: The arguments advanced by the learned Government Advocate is that the ru....