TaxTMI 
TaxTMI 
2021 (2) TMI 958
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.... The contention of the appellant is that the said items should be treated as items coming under Entry 3(2) of Third Schedule of the KVAT (Amendment) Act, 2005 and hence taxable at the rate of 4%. 2. At the time of admission, this Court found that the following substantial questions of law arise for consideration in this appeal. "(i) Whether on the facts and in the circumstances the Authority for Clarifications is justified in law in holding that Order No. C7-16374/06, dated 19-5-2006 & Order No. C7-15028/06/C.T., dated 29-6-2006 are sufficient to hold that water supply and sanitary fittings of every description are taxable at the rate of 12.5% in the light of the setting aside of the reclarification and direction to further re-clarify the matter in OT Appeal No. 5/2006? (ii) Whether on the facts and in the circumstances the Authority for Clarifications is justified in law in holding that articles of brass come under HSN code 7418.20.10 & parts 7418.20.20 disregarding the fact that articles of brass has been separately listed by the Customs Tariff Act, 1975 under Other Articles of Copper aligned with HSN 7419.99.30 as per An....
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....y products sold by the appellant, made of brass. It was also stated in the order which is produced as Annexure D that the Commissioner should also examine whether the items made of copper referred to in Entry 101(7) of the notification are really intended to be copper or brass and if any mistake has happened, he is free to correct it. Even though Annexure D judgment was issued in May, 2008, the appellant had not taken up the issue thereafter and his registration also stands cancelled in 2012. We fail to understand why the appellant took up the matter again before the Authority for Clarification in the year 2019. On a specific question regarding the same, the Counsel for the appellant submits that one of their sister concerns, namely, M/s. Cochin Sanitary Stores, had also approached the Authority for Clarification. We find from Annexure F that as far as M/s. Cochin Sanitary Stores is concerned, they had challenged the assessment and penalty proceedings against them in appeal. As such, there can be no proceedings under Section 94 at the instance of M/s. Cochin Sanitary Stores. Annexure F also reveals that no application for clarification under Section 94 of the KVAT Act was fil....
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.... nickel, Tin, and other base metals other than those specified in any other Schedule. xxxxxx (1) xxxx xxxx xxxx xxxx xxxx (2) Articles of Brass 7419.99.30 6. Entry 101 of the list of goods included as per SRO No. 82/2006, to be taxed at 12.5% under Section 6(1)(d) reads thus : "101. Water supply and sanitary equipments and fittings of every description including storage tanks other than those made of PVC; sinks, wash basins, wash basin pedestals, taps, bath showers, bidets, water closet pans, flushing cisterns, urinals, commodes, man-hole covers used in connection with drainage and sewerage disposals, parts and accessories thereof; (1) xxxxxxxxxx  xxxxxxxxxx xxxx xxxx (7) Sanitaryware and parts thereof of copper (a) Sanitaryware 7418.20.10 (b) Parts 7418.20.20 xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx (13) Others   xxxxx" 7. Annexure D judgment considered the earlier clarification issued by the Commissioner holding that sanitary equipments made of brass comes under the notification taxabl....
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.... the World Customs Organisation. 10. As pointed out by the Learned Senior Government Pleader, Chapter 74 of the Explanatory Notes on HSN Coding system deals with "Copper and articles thereof". The Chapter deals with Copper, copper alloys and related materials. Several kinds of brass items have been included for coding under the Chapter. HSN 7418 deals with table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, glouse and the like, of copper; and sanitaryware and parts thereof, of copper. Sanitaryware and parts thereof, of copper are covered under HSN 7418.20.10 and HSN 7418.20.20. Admittedly the Commissioner is wrong in classifying sanitarywares made of brass under HSN 7418.20.10. 11. HSN 74.19 as per the Explanatory Notes relates to "other articles of copper". HSN 7419.99 relates to "other" and has the following recital in the Explanatory Notes : "This heading covers all articles of copper other than those covered by preceding headings of this Chapter or by Note 1 to Section XV, or articles specified or included in Chapter 82 or 83, or more specifically covered elsewhere in the Nomenclature". ....
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....it one. Whether 'bakery shortening' falls under Entry 38(18)(d) as 'vanaspati', has to be looked at on the basis of the definition available in 1516, which is extracted above. As we saw, Wood Craft Products held that HSN is the internationally accepted nomenclature formulated to 'reduce disputes on account of tariff classification'. In resolving a dispute relating tariff classification, HSN was found to be the foremost, best and the safest guide. Reckitt Benckiser (India) Ltd. also held that when entries in a taxation statute are aligned with the HSN codes, then, necessarily the interpretation has to be based on the HSN code, as available in the Customs Act. When the entry in the KVAT Act refers to the eight digit HSN Code the classification has to be decided on the basis of the HSN Chapter heading and the enumerated commodities. If the commodity falls within that, definitely it has to be included under the Entry, against which the HSN code is given." 13. Applying the principles, it can be seen that Chapter 74 deals with "Copper and articles thereof". The Note at the beginning of the Chapter says that it would take in alloys of copper also. Several items of copper are dealt....