TaxTMI 
TaxTMI 
2021 (11) TMI 3
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....(1) of the Karnataka Value Added Tax Act, 2003 ('KVAT Act' for short) challenging the judgment dated 03.01.2019 passed in STA No.313/2017 by the Karnataka Appellate Tribunal at Bengaluru ('Tribunal' for short) relating to the tax periods April 2014 to March 2015. 2. This revision petition was admitted to consider the following question of law:- "Whether the Tribunal was right in holding that Manufactured Sand (M-Sand) is not covered under Entry 83 of Schedule III to the Karnataka Value Added Tax Act, 2003?" 3. The assessee, a registered dealer under the provisions of the KVAT Act was engaged in the manufacture and sale of sand which is marketed as 'Robo Sand' during the tax periods under consideration. The assessee was collec....
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....ation dated 31.03.2015 would make it ample clear that prior to the said date, the 'manufactured sand' was liable to be taxed under the residuary entry at 14.5%. In order to reduce the rate of tax on sale of Msand, the Government of Karnataka has issued a Notification dated 31.03.2015, thereby reducing the rate of tax to 5.5%. Thus, sought for the dismissal of the revision petition. 7. We have carefully considered the arguments advanced by the learned counsel for the parties and perused the material on record. 8. Entry 83 of Third Schedule to the KVAT Act reads thus:- "Goods Taxable at Five and One Half Per Cent; 1 to 82. xxxx 83. Sand and grits". 9. Had the intention of the Legislature was to exclude 'man....
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.... Concrete & Construction. The artificial sand produced by proper machines can be a better substitute to river sand. The sand should be sharp, clean and course. The grains should be of durable material. The grain sizes must be such that it should give minimum voids. The presence of clay and silt retards the setting of the cement and makes the weaker and the walls or the slab leaks and holds dampness. Comparison of artificial sand with river sand. Sand manufactured by Vertical Shaft Impactor is of cubical shape. Such sand can be used for all types of construction work, Concreting, Plastering etc. and is better substitute to river sand. Followings are the actual result of Concrete Designed with river sand and Artificial sand ....
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.... The slabs, using Artificial sand, are more leak proof than by river sand. Further I have relied the following judgments in the strength of the above opinion." Further noticed that the Commissioner of Commercial Taxes, Bengaluru in the case of a different assessee has clarified that the manufactured sand attracts tax of 5% as per Entry 83 of the Third Schedule of the KVAT Act vide clarification No. CLR/CR/134/2011-12 dated 03.02.2012. 11. It is true that the clarification issued by the Advance Ruling Authority shall be binding, only on the applicant who seeks clarification and only in respect of the goods or transaction in relation to which a clarification is sought and also only in the proceedings before the officers of the departme....
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....s for interpretation to arrive at a decision on proper classification of a tariff entry. The test, as to what a common man viewing or dealing with the article will understand it to be, would be relevant. The Hon'ble Apex Court has held that while interpreting the entry for purpose of taxation recourse should not be made to the scientific meaning of the terms or expressions used but to their popular meaning, that is to say, the meaning attached to them by those dealing in them. 15. The Hon'ble Apex Court in the case of Union of India vs. Garware Nylons Ltd., reported in (1996) 10 SCC 413, observed that the burden of proof is on the taxing authorities to show that the particular case or item in question is taxable in the manner cla....