2016 (2) TMI 5

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....visions of the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as the "KVAT Act", for brevity) and also under the Karnataka Tax on Entry of Goods Act, 1979 (hereinafter referred to as the "KTEG Act", for brevity). It has filed monthly returns in Form VAT-100 declaring value of goods liable to entry tax and paid the tax as admitted therein. The 1st respondent is said to have verified the statement of accounts produced and concluded the re-assessment under Section 6(1) of the KTEG Act dated 30.06.2015 in respect of the year 2009-10 by considering that Rubber Process Oil of the value of Rs. 2,86,59,985/- as being liable to entry tax at 5%. Similarly, in respect of the year 2010-11, assessment is concluded under Section 5(4) of the....

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....ocate has made available the file pertaining to the matter leading to the clarification issued by the Commissioner of Commercial Taxes. The note sheet maintained in the file reveals that the Deputy Commissioner of Commercial Taxes has recorded that on enquiry with the applicant, the applicant claimed that he was merely a trader not having enough knowledge regarding Rubber Process Oil, but he was aware that it was a petroleum product. In view of the entry relating to Sl. No.1(viii) of the table of the notification issued under Section 3(1) of the KTEG Act dated 30.03.2002 listing the following petroleum products, namely, (a) Lubricating oil (b) Transformer oil (c) Brake fluid or clutch fluid (d) Bitumen (asphalt) and (e) Tar and others exclu....

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.... without basis are the opinions furnished by two bodies, namely, Indian Rubber Institute and Indian Oil Corporation Limited. The certificate issued by the Indian Rubber Institute reads as follows: "Rubber Process Oil (RPO) is formulated from highly refined solvent extracted base stock of low sulphur content and is manufactured by distillation, solvent extraction and subsequent re-waxing high base oil, specifically for use in the manufacture of rubber products. RPO contains Hydro carbon at 30-55% that is saturates contained in the oil and polar content 4-10% by weight. RPO is used in the manufacture of rubber products to serve primarily as a processing aid and constitutes a necessary ingredient in the manufacture of rubber products - bo....

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....he world. These are in the product portfolios in all oil companies under various commercial names. 3) All the above types are used as inputs in the manufacturing process for making various rubber products including automotive tyres, tubes, rubber foot wear, toys etc. 4) These Rubber process oils help in dissolution of rubber (both synthetic as well as natural) and also in improving dispersion of fillers and flow properties of rubber compounds during processing. 5) Depending upon the type of rubber and the end product applications, anyone of the above mentioned type suitable for a particular end product is used. 6) Paraffinic type is recommended for use as plasticizer in the manufacture of various rubber products, both natural as wel....