2018 (11) TMI 1440

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....br>MR K. VINOD CHANDRAN AND MR ASHOK MENON, JJ. For The APPELLANT : GOVERNMENT PLEADER SRI C E UNNIKRISHNAN For The RESPONDENT : ADV. DR. GEORGE ABRAHAM JUDGMENT Vinod Chandran, J The issue raised in the above writ appeals is as to whether the M-Sand produced by the various writ petitioners by using a vertical/horizontal shaft impactor machine is liable to separate assessment under the Kerala Value Added Tax Act, 2003 (for brevity KVAT Act); even when the dealers had opted for compounding under Section 8 of the Act. 2. The learned Single Judge based on the (i) proviso to Section 8, (ii) the fact that there was a subsequent amendment made bringing in a separate compounded fee for VSI/HSI from the year 2014-15 as also (iii) the judgm....

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....y. The budget speech for the assessment year in which there was introduction of VSI/HSI also under the compounding scheme, has also been relied on to further buttress the intention of the legislature in having provided the coverage under the scheme only prospectively from the assessment year 2014-15. 4. We have heard the learned Senior Counsel Sri Raju Joseph, Sri. T.M. Sreedharan, Senior Counsel, Sri. Harisankar V Menon, Dr.George Abraham, Sri K.I Mayankutty Mather, Sri. K.T Poulose, Sri. N. James Koshy, Smt. R.Leela, Sri.Philip J Vettickattu, Sri. Mathew A Kuzhalnadan and Sri.S.Sreedev for the appellants and the learned Special Government Pleader Sri. C.E Unnikrishnan for the State. 5. Section 8 has been extracted by the learned Single ....

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....and was also found to be a product that is obtained in the process of production of granite metal using mechanised crushing machines. It was specifically held that the mere fact that a dealer had obtained a different type of machine for production of a finer size of granite metal or sand was of no consequence. We agree with the findings; on the legislative scheme envisaging the payment of compounded fee on the basis of the number of primary and secondary crushers used within a crusher unit. A different type of machine not specifically noticed by the legislature, if and when used by the crusher units, to produce the same product but of a different constitution, for which no separate compounding fee was provided; would not by such user alone ....

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....e metals whether it be from the machines as specified in Clause (b) or otherwise. The compounding scheme also is for the dealers or the crushing units and on option exercised, they are absolved from regular assessment of the goods produced in the crusher units whether it be larger or smaller aggregates of granite metal or M-Sand by a VSI/HSI. 9. We also notice that the legislature having found that there is a loss of tax insofar as the M- Sand produced by a different machine had from the assessment year 2014-15 provided a compounding fee for the VSI/HSI. The provision so introduced was also on the following reasoning as available in the budget speech of the Finance Minister: "Due to scarcity of river sand, the new product called manufactu....