Sales Tax Appeal Nos. 1780 to 1803 of 2012 [C.H.-3]. Case: East India Technologies Private Limited Vs State of Karnataka. Karnataka Appellate Tribunal
| Case Number | Sales Tax Appeal Nos. 1780 to 1803 of 2012 [C.H.-3] |
| Counsel | For Appellant: Sri Sanjay M. Dhariwal, Chartered Accountant and For Respondents: Sri R.C. Yadavannavar, State Representative |
| Judges | Niazahmed S. Dafedar, DJM and P. Puttaraju, CTM |
| Issue | Karnataka Value Added Tax Act, 2003 - Sections 4, 63, 72(2) |
| Citation | 2013 (77) KarLJ 20 |
| Judgement Date | May 30, 2013 |
| Court | Karnataka Appellate Tribunal |
Judgment:
P. Puttaraju, CTM
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These 24 (twenty-four) appeals are filed under Section 63 of the Karnataka Value Added Tax Act, 2003 (for short, "the Act") challenging the appeal order passed by the Joint Commissioner of Commercial Taxes (Appeals 4), Bangalore (hereinafter referred to as 'First Appellate Authority' or for short, 'FAA') in Case Nos. VAT/AP 247 to 270 of 2011-12, dated 26th May, 2012 by which the FAA has upheld the reassessment orders dated 19th January, 2012 of the Assistant Commissioner of Commercial Taxes (Audit-42), DVO-4, Bangalore (for brevity, 'AA'). Apart from the same, the AA has also levied penalty and interest also which are also upheld by the FAA. Aggrieved by the same, these appeals have been preferred. The relevant facts of the case and grounds of appeals in brief are stated thus:
(i) The appellant is a private limited company registered under KVAT Act and Central Sales Tax Act, 1956 bearing TIN-29280701556 and borne on the records of LVO-025, Bangalore.
(ii) The appellant is engaged in the business of manufacture and sale of Expandable Polystyrene (EPS) cushion moulding, EPS sheets, EPS beds and Wooden pallets used for packing purpose.
(iii) The appellant has discharged tax at the rate of 4% on all these goods as packing materials falling under Entries 51 and 63 of the Third Schedule of the Act. The AA has initiated reassessment proceedings and has levied higher rate of tax at 12.5% instead of 4%. Further, the AA has also levied penalty and interest. Aggrieved by the AA order, the appellant has approached the FAA who by his impugned order dated 26th May, 2012 has allowed the appeals in part confining the rate of tax at 4% on EPS boxes, crates and cases for conveyance or packing of goods and deciding that the other goods namely EPS beads, EPS sheets and wooden pallets are liable for tax at higher rate at 12.5%. By deciding so, the FAA has directed the AA to issue revised demand notice and also to examine to levy penalty under Section 72(2) of the Act as per the observations made by him. Further, FAA has also directed the AA to re-compute the interest also.
(iv) The only contention raised before us is with respect to the classification of "wooden pallets" as unscheduled goods and liable for tax at higher rate at 12.5% as held by the FAA. But, the appellant contends that the same are goods falling under Entry 51 of Third Schedule to the Act as industrial input and packing materials as notified under the statute...
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