2011 (7) TMI 1040

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....it filed in support of the application for condonation of delay, the delay of 68 days in preferring the appeal is condoned. 2. The assessee has preferred this appeal challenging the order passed by the revisional authority, which held that the assessee is not entitled to the commission on the payment of entry tax in so far as petroleum oil, which is used in the manufacturing of transformers. 3. The assessee is engaged in the manufacture and sale of transformers. The assessee had bought into the local area transformer oil at Rs. 1,02,31,869 and he has not admitted the tax liability at five per cent on the sale under the provisions of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 (fo....

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.... both the parties, taking note of the aforesaid notifications and also the provisions of the Act, the Additional Commissioner held that the transformer oil which is not found in the entry in Explanation I invariably falls under Explanation II, wherein it is clear that even if the goods mentioned in Sl. Nos. 1 to 10 are brought into the local area for use or consumption as raw materials and inputs in the manufacture of tobacco products and liquor, the tax leviable and collectable on such goods shall be at the rate specified in such serial numbers and in the case of the company is five per cent and it is not exempted from payment of entry tax and therefore, he restored the order passed by the assessing authority and directed the authority to ....

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....brought into a local area for use or consumption as raw material and inputs in the manufacture of tobacco product and liquor, the tax leviable and collectable on such goods shall be at the rate specified in such serial numbers. Explanation.-If any of the goods specified in Sl. Nos. 1 to 10 in the above table are brought into a local area for use or consumption as raw material, component parts and inputs in the manufacture of a intermediate or finished product, the tax payable on such goods shall be at the rate specified therein." 7. A careful reading of the aforesaid three Explanations makes it very clear that the transformer oil which finds entry in sub-entry (viii) of (b) of main entry 1 are taxable at five per cent when they are ca....