2016 (1) TMI 189

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....nd coolants at its plants in Maharashtra and Silvassa. Petitioner brings in stocks by way of transfer into the State of Karnataka, sold locally. In terms of Section 3 of the KTEG Act, tax is to be levied on the entry of those goods specified in the First Schedule thereto, into a local area for consumption, use or sale therein. In terms of Sub Section (1) State Government issued the notification dated 30.03.2002, effective from 01.04.2002, for levy of tax on the entry of goods specified in the said notification into a local area for consumption, use or sale therein. Serial No.1(vii) of the said notification provides for various petroleum products including lubricating oil to be taxable under the KTEG Act at the rate of 5%. For the Assessment....

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....tax on 'coolant oil'. In response to which, the 2nd respondent issued the clarification No.KTEG/CLR/CR-21/2012-13 dated 01.04.2013 Annexure 'B' stating that the 'coolant which is a lubricating oil and petroleum product liable to entry tax at 5% as per Sl. No.1(vii)(a) of the Table in notification No.FD 11 CET 2002 dated 30.3.2002'. Instead of restricting the clarification to the case of the trader, the 2nd respondent is said to have held that coolant oil is a lubricating oil and a petroleum product eligible to tax under the KTEG Act. 4. On 19.05.2014, one M/s. Poomkudy Agencies Pvt. Ltd. filed another application before the 2nd respondent seeking clarification regarding the applicability of entry tax on purchase of 'radiator coolant', wh....

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.... to quash the clarifications Annexures-B and C, in addition to declaring that coolants are not lubricating oils or petroleum products and hence, not liable to tax under the KTEG Act. 7. Petitions are opposed by filing statement of objections of the respondents-Revenue stating that Annexures-D1 to D5 are notices to which petitioner may respond hence, the writ petitions being premature are not maintainable. In addition, it is stated that the pleadings disclose factual aspects which the statutory authority would examine and which this Court may not be in a position to do so, hence petitioner be relegated to the alternative and effective remedy available under the statute. In short, it is the statement of the Revenue that the petitions are p....

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....ry and illegal calling for interference. 10. The 2nd respondent is at liberty to put to test the 'coolant' manufactured by the petitioner, in a legal manner to ascertain its ingredients and thereafter, to come to the conclusion as to whether or not it is a petroleum by product, falling within the term lubricating oil liable to tax at the rate of 5% under the KTEG Act. In the absence of such enquiry and proof, notices (Annexures-D series) issued to the petitioner calls for interference. 11. As regards the challenge to the clarifications Annexures-B and C, it is needless to state that they do not qualify interference at the instance of the petitioner, nevertheless it is declared that they have no application to the case of the petitione....