TaxTMI 
TaxTMI 
2011 (1) TMI 1293
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....006-2007 dated September 8, 2006 at annexure A issued by the second respondent and to declare the phrase "all kinds of bricks" occurring in entry 2 of the Third Schedule to the Act as exhaustive, in so far as the petitioners are concerned and to quash the reassessment orders at annexures C and D for the assessment periods 2007-08 and 2008-09, respectively in W.P.Nos. 13172-73 of 2010 and annexure G for the assessment period 2009-10 in W.P.Nos. 13376 and 13843-51 of 2010 issued by the first respondent and, to issue writ of mandamus directing the respondents to treat the paving bricks manufactured and sold by the petitioners as bricks falling within the phrase "of all kinds of bricks" occurring in entry 2 of the Third Schedule to the Act as c....
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....tax at four per cent and, any other size blocks are taxable at 12.5 per cent under section 4(1)(b) of the Karnataka Value Added Tax Act. The same is under challenge in these petitions. Heard. According to the petitioners, entry 2 of the Third Schedule is exhaustive and includes all kinds of bricks. There is no need for the second respondent to re-interpret by exercising power of sub-delegation as per annexure A by issuing clarification. The respondent-authority having inspected the business premises on May 21, 2010 and on March 5, 2010, respectively, having verified the books of accounts, issued a proposition notice under section 39(1) of the Value Added Tax Act calling upon the petitioners to show cause as to why the turnover relating to....
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....ry powers, wherein the assessment orders made specifically refers to the circular of the Commissioner. Although, the Commissioner has referred to only hollow bricks and though there is no reference to paving tiles or bricks, however, what is being noticed as per annexure A, the circular issued by the Commissioner dated September 8, 2006 on the application filed by M/s. Shilpa Concrete Products, Marathahalli, wherein a clarification was sought regarding the rate of tax applicable on cement hollow bricks, wherein referring to section 59(4) of the Karnataka Value Added Tax Act, 2003, it is stated that it empowers the Commissioner of Commercial Taxes to clarify the rate of tax payable under the Act if he considers it necessary or expedient to d....
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....t as residuary power although, specific entry is provided under the Third Schedule might be under over anxiety to show that he has imposed tax for the benefit of the State. The approach of the authority should be practical in nature. Without understanding the provisions as is provided under the Schedule, the reassessment officer has come to a wrong presumption to impose higher rate of tax, which is uncalled for. Although it is argued at the Bar that the appellate remedy is an exhaustive remedy, the condition precedent to avail of that remedy is to deposit 50 per cent of the tax at the outset. Apart from that, in view of the submission made by the learned Government Pleader that annexure A, the circular of the Commissioner does not cover the....