PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: Sri.V.Somasundaran.I.A.S
Sub:- KGST Act,1963-
Clarification U/s. 59A -rate of tax of "Kattimoru"
and
"Sambaram"- Orders issued.
Read:- 1. Application dated 17..11..01 put in by M/s. RF Enterprises,
Eramalloor.P.O,
Cherthala.
2.
Posting Notice dt. 01.02.02 and 17.04.02.
ORDER No.C3.62774/01/CT Dt. 15.02.03
M/s. RF Enterprises, Eramalloor P.O, Alappuzha has sought clarification
as to the rate of tax applicable to their product "Kattimoru"
and "Sambaram". Sri. V.Devananda Narasimham, Advocate
and authorised representative appeared and was heard on 07.05.02
The items coming under entry 49 of the 1st schedule
to the KGST Act are curd and butter milk taxable @ 4% where as
entry 92 includes milk products including milk powder, baby food,
ghee, cheese and butter except curd, butter milk, Horlicks,boost,
Bournvita, complan and similar items whether or not bottled canned
or packed taxable @ 12 %. Kattimoru is formed when fat is removed
from curd and Kattimoru has got different contents identity and
utility when compared with curd. Kattimore is used as drinks where
as curd is used for cooking. Butter milk contain butter. Butter
content is not in kattimoru. Hence kattimore cannot be classified
under curd and butter milk.
Sambaram is diluted form of kattimore and is prepared by adding
water, salt, green ginger and chilies and cannot be grouped under
entry 92 of the first schedule to the Act.
As there is no specific entry in any of the schedule to KGST Act
for Kattimore and Sambaram and not qualified to come under entry
49 or 92 of 1st schedule the items will squarly to
come under entry 177 of the 1st schedule taxable @
8 %. The point raised is clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To
M/s.
RF Enterprises
Eramalloor.P.O
Cherthala,Alappuzha.
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act,1963- Clarification U/s. 59A-Rainguarding compound-
rate of tax-
Orders-issued reg:-
Read:- Application dt. 06.06.00 from M/s. Wellworth Engineers
and Polymers.
OREDER No.C3.30254/00/CT Dt. 15.02.03
M/s. Well worth Engineers and Polymers has sought for clarification
U/s. 59A as to whether the rain guarding compound can be classified
under the item plant protection chemicals taxable at 4 %.
Inspite of the repeated notices issued from this office dt. 12.07.00,21..10..00,
28.05..01,16.07.01, 12.11.01 and 30.01.02 neither the applicant
nor his representative appeared and established the case that
the product manufactured and sold is coming under the entry plant
protection chemical.
Therefore the case is disposed of on merits. The entry 47 of the
1st schedule to the KGST Act reads, Copper sulphate,
pesticides, fungicides, insecticides, weedicides and plant protection
chemicals. These are either chemicals or drugs used for the protection
of plants from pests, fungus, insects and other plant diseases.
The rubber planters use rain guard for tapping during rainy season
alone, use the said commodity for fixing the rain guard to the
tree and those planters who are not tapping during rainy season
will not use the said commodity. So the product cannot be treated
as a plant protection chemical as per the commercial and common
parlance theory.
The utility and the sole identity of the rain guarding compound
is to paste the rain guard with the trunk of the rubber tree watertight.
So the entire rain water will be flown out of the cut bark. In
case the stapler is used in the place of this compound, it would
not be watertight, whereas the compound fixes the rain guard to
the tree and rain water will not swipedown in to the cut bark
of the tree as it act as an airtight adhesive and not a plant
protection chemical. Therefore the commodity is nothing but an
adhesive coming under entry 3 of the 1st schedule to
the KGST Act 1963 taxable at 12%.
The question referred is clarified accordingly.
Sd/-
Commissioner
/Approved for Issue/
Deputy Commissioner(General)
To
M/s. Wellworth Engineers & Polymers
B7.-Industial Estate
Ettumanoor, Kottayam.
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGSTAct, 1963- Clarification U/s. 59A- rate of tax applicable
to Medical Oxygen
orders issued- Reg:
Read:-
1. Application dt. 25.01.03 from M/s. Selerence Medical Gases
(P) Ltd. Tvpm.
2. Posting Notice No.C3.5388/03/CT dt. 28.01.03
ORDER No.C3.5388/03/CT Dt. 28.02.03
M/s.
Selerence Medical Gases (P) Ltd, Thiruvananthapuram-11 has sought
a clarification as to the rate of tax applicable to Medical Oxygen.
The applicant have waived the opportunity of hearing and clarification
is issued on Merits.
The issue under consideration is whether medical oxygen can
be treated as item coming under entry 67 or 145 of the 1st
schedule to the KGST Act. Entry 67 reads as follows: "Gas,
liquified or not other than those specifically mentioned in this
schedule and gas meter and parts thereof" where as entry
145 reads "surgical equipments and instruments, medical implants
and injection needles".
Entry 67 relates to gases in any form whether it is industrial
or not and other than those specifically mentioned. In entry 145
medical oxygen is not specifically mentioned but generally termed
as "medical implements" Therefore as medical oxygen
is not specifically mentioned in any of the schedule and there
is no dispute that medical oxygen is `gas' it can only be assessed
under entry 67 of the 1st schedule to the KGST Act.
The point sought for is clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
M/s. Selerence Medical Gases (P) Ltd
TC.1/817, Thoppil, Panayil Lane
Kumarapuram, Tvpm11
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act, 1963- Clarification U/s. 59A- Calculation of turnover
from 01..01..00 to
31..03..00 as mentioned in SRO. 1090/99- declined- orders issued-
reg:
Read:-
1. Application dt. 20.01.03 put in by M/s. Vimala welfare Centre,
Cochin- 31
2. Posting Notice No.C3.60710/02/CT dt. 24.01.03
ORDER No.C3.60710/02/CT DT. 28.02.03
M/s. Vimala Welfare Centre, Cochin- 37 has requested to clarify
whether they are eligible for exemption from tax in respect of
turnover of their products from 01.01.00 to 31.03.00, where their
products were approved by the Khadi and Village Industries Board
and the turnover for the three months from 01.01.00 to 31.03.00
was less than Rs. 10 lakhs.
Sri.T.K.Mathew, Chartered Accountant appeared and was heard on
15.02.03. The applicant has filed appeal before the appellate
authority against the assessments and the disputed issue was settled
through the order of the appellate authority.
Since the applicant filed appeal before the appellate authority
an application for clarification U/s. 59A (1) of the KGST Act
cannot be entertained and therefore the request is declined.
Sd/
Commissioner
/Approved for issue/
Deputy Commissioner (General)
To.
Sri.T.K.Mathew, FCA
Chartered Accountant
P.V.Chacko & Co.
M.G. Road, Cochin- 35.
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act- 1963- Clarification U/s. 59A- Rate of tax on products
of Khadi and Village
Industrial Units - orders issued.
Read:-
1. Application dt. 08..07.2002 put in by Sri.K.S. Hariharan, Advocate,
Adam Plaza,
North Parur, Ernakulam.
2. Posting Notice No.C3.31360/02 dt. 23.07.02 & 2.09.02
ORDER No.C3.31360/02/CT Dt. 28.02.03
Sri.
K.S. Hariharan, Advocate has requested the rate of tax on products
of Khadi and Village Industrial units recognised by Khadi and
Village Industries Board and Khadi and Village Industries Commission
from 01.04.97 to 31.03.02 and the conditions and restrictions
required to get exemption. Further the applicant have requested
the rate of tax on Rice products such as Rice rava, Rice bran,
puttu pody, broken rice etc from 01.04.97 to 31.03.02.
The applicant has not availed any of the opportunities of hearing
and hence the clarification is issued on points raised in the
application.
With regard to the rate of tax on products of Khadi and Village
Industrial units recognised by Khadi and Village Industries Board
and Khadi and Vilage Industries Commission, it is governed by
SRO. 1727/93 from 01.04.97 to 31.12.99 and by SRO. 1090/99 from
01.01.00 and thereafter. Rice rava and puttupody are rice products
which do not have specific entry in the schedule. Therefore the
items will fall under general entry No. 177 of the 1st
schedule taxable at 8 %. In the case of broken rice the same is
treated as rice and taxable at 1 % as per entry 9 of the 2nd
schedule to the KGST Act. Rice bran is taxable at 4 % as per entry
26 of 1st schedule of the Act.
The points sought for are clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
Sri.K.S. Hariharan
Advocate
Adam Plaza, North Parur
Pin. 683513
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act,1963- Clarification U/s. 59A -whether the sale
of Bottles and packing
materials for own use of Medical Practitioners by paying CST at
the rate of 10 %
attracts any liability under KGST Act- orders issued reg:
ORDER No.C3.7793/02/CT Dt. 03.03.03
I.
Sri.S.Rajeev, Advocate & Notary, Attingal,has sought clarification
on the following.
- Whether
the goods consigned by his client M/s. Jain Bottle Supplying
Company Delhi to the practicing Doctors in Kerala for their
personal use, not for sale charging tax at 10 % CST is in order.
- In
the above said circumstance, whether the seizure of goods by
the sales tax authorities in Kerala are legal especially when
Doctors or any person can purchase goods from any where in India
after paying 10 % CST for their personal use and not for sale.
- In
response to the notice issued Sri.S.Rajeev Advocate, appeared
and he was heard. He has requested to clarify the above points.
- Practicing
Doctors are not dealers under the provisions of the KGST Act
1963. The sale of Bottle and packing materials by M/s. Jain
Bottle Supplying Co. Delhi to various doctors for own use by
charging 10 % CST is in order. The sale effected by the company
is an interstate sale liable to tax @ 10 % by viture of clause
(b) of sub-section (2) of Section 8 of the CST Act 1956. The
goods viz packing materials purchased by doctor by paying 10
% CST from outside the state for own use is not taxable under
the KGST Act 1963. Under entry No.13 of Schedule I of SRO. 1090/99,
the turnover relating to medicines dispensed to patients in
the course of treatment by medical practitioner for their own
dispensaries is exempted from levy of tax. Moreover the commodity
in question is taxable at the point of first sale with in the
state. In the instant case there is no sale of packing material
as such. Therefore packing materials purchased by Doctors by
paying 10 % CST from out side the state for own consumption
is not taxable. If the bonafides of the transport of goods have
been proved then the seizure of goods at the ckeckpost or by
any authority is not legal.
The
points referred to are clarified accordingly.
Sd/
Commissioner
/Approved for issue/
Deputy Commissioner (General)
To.
Sri.S.Rajeev,
Advocate & Notary,
Attingal,695 101
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act, 1963- clarification U/s. 59A-
Rate of tax of timber used in the manufacture
of furniture. Is it necessary to pay 2 % tax on wood purchased
by paying 12 % as per
column 8 in the schedule V- orders issued.
Read:-
1. Application for clarification U/s. 59A of the KGST Act 1963
dt. 05.08.02 by M/s.
Jacob Furniture Industries, Chevoor, Trissur.
2. Notice No.C3.38931/02/CT dt. 02.09.02.
ORDER No.C3.38931/02/CT Dt. 28.02.03
M/s. Jacob Furniture Industries, Chevoor, Trissur has sought clarification
as to whether they have to pay 2 % tax on wood which was purchased
by paying 12 % tax as per column 8 of schedule V of the KGST Act
which is used for the manufacture of furniture. The case was posted
for hearing on 27.09.02. Sri.K.A. Joseph, Chartered Accountant
appeared and was heard. Timber is an item included in the 5th
schedule to the KGST Act and having tax liability at 1st
and last points at 10 % and 2 % respectively. Third proviso to
section 5 (1) (v) (a) stipulates that where a registered dealer
after purchasing goods on payment of the tax at 1st
point sale uses or disposes of such goods in any manner other
than by way of sale with in the state, he shall pay tax at the
rate applicable to the last sale point on the purchases turnover
of the goods.
What is stated in column 8 of the 5th schedule is relevant
here which states that where there are no two points of sale in
the state the purchaser has to pay tax at the rate of 12 %. In
the instant case the dealer effecting purchase of timber from
the registered dealer after paying 12 % tax consumes the same
in the manufacture of furniture. There will not be two points
of levy and the tax due has to be paid by the first purchaser.
Therefore for a dealer who purchases timber by paying 12 % tax
and uses the same for the production of furniture then there will
not be any further tax liability for the timber consumed.
The question referred to me is clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
Sri.M.J.Jacob
M/s. Jacob Furniture Industries
Chevoor, Trissur
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act, 1963- Clarification U/s. 59A-
rate of tax of spray oil which is a pesticide
declined- orders issued.
Read:- 1. Application putin by M/s. Kamdar Brothers, Mattancherry-
Cochin Dt. 18.11.02
2. Posting Notice No.C3.38484/02/CT dt. 04.12.02.
ORDER No.C3.38484/02/CT
DT. 28.02.03
M/s. Kamdar Brothers, Mattancherry, Cochin has requested to clarify
the rate of tax applicable to spray oil which is used as pesticides,
insecticides and fungicides by dealers in Black pepper.
Sri.C.J.Xavier, Advocate, appeared and was heard. It is ascertained
that the applicant company has filed appeal before the Appellate
authority against the order of the assessing authority and appeal
is still pending. If an appeal is pending before any appellate
authority the commissioner is not empowered to issue clarification
U/s. 59A of the KGST Act and therefore the request for clarification
is declined.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
M/s. Kamdar Brothers
VI/ 898, Bazar Road
Mattancherry
Cochin- 682 002.
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act, 1963- Clarification U/s.
59A- Whether mobile phone will come under the
IT products category- orders issued-reg:
Read:-
1. Application dated 21.11.01 put in by M/s. Motorola India (P)
Ltd, Bangalore.
ORDER No.C3.64850/01/CT Dt. 07.03.03
M/s.
Motorola India (P) Ltd, Bangalore has requested to clarify whether
Mobile Phones are Radio Communication Receivers and Transmitters
coming under the IT Products category taxable at 4 %.
Sri.
Vijay N. Menon appeard and was heard on 30.11.01 by the then Deputy
Commissioner (General). The applicant argued that the item will
clearly fall under IT products notified and will therefore attract
only 4 %. Expert opinion has been obtained from B.S.N.L. in this
regard and B.S.N.L. has opined that the cellular hand sets referred
in the application will not come under the purview of item 9 of
table to the notification SRO. 1091/99 inserted as per SRO. 801/01.
Therefore mobile phone hand sets will not come under IT products
but are taxable at 12 % at the point of first sale within the
state.
The question raised is clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
Motorola India (P) Ltd.
The Senate, 33A ,Ulsoor Road
Bangalore- 560 042
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act, 1963- Clarification U/s.
59A- Exemption from purchase tax as per SRO.
440/00- declined-orders issued:-
Read:-
1. Application dt. 05.11.02 put in by M/s. Ibsons Industries Peringala
P.O.
2. Posting notice no.C3.53666/02/CT Dt. 19.11.02 and 17.12.02.
ORDER No.C3.53666/02/CT Dt.07..03..03
M/s. Ibson Industries Peringala.P.O, Perumbavoor has requested
to clarify whether.
1.
the assessment made by the STO U/s. 19 invoking SRO.291/00 is
correct.
2.
The exemption granted by SRO. 440/00 is applicable for SSI units
recognised by the Kerala Khadi and Village Industries Board.
Sri.P.K.Georgekutty, Chartered Accountant appeared and was heard
on 13..01..03. At the time of hearing it is ascertained that an
appeal is pending against the impugned assessment
Since an appeal is pending before the appellate authority, the
Commissioner is not empowered to issue clarification U/s. 59A
(1) of the KGST Act and therefore the request for clarification
is declined.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To
Sri.K.I.Aboobacker
Ibson Industries
Peringala.P.O
Via- Kumarapuram 683 565.
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act,1963- Application filed U/s. 59A- declined- orders
issued.
Read:-
1.Application dt. 27.10.01 by Sri.K.S.Hariharan, Advocate, North
Parur.
ORDER No.C3.59470/01/CT
Dt. 28.02.03
Sri. K.S.Hariharan, Advocate, North Parur has put in an application
U/s. 59A of the KGST Act 1963 requesting to clarify the rate of
Magnesium, Sulphate, Dry Vegetables (dehydrated) including Onion
flakes, SSI products units manufacturing fridge, rubber foams
etc whether the subsequent dealers liable for last point tax.
According
to section 59A of the KGST Act 1963, the Commissioner is empowered
to exercise the powers envisaged U/s.59A if any dispute arises
otherwise than in a proceedings before any appellate or revisional
authority or in any Court or Tribunal as to whether for the purpose
of this Act.
a)
any person is a dealer; or
b)
any transaction is a sale; or
c)
any particular dealer is required to be registered; or
d)
any tax is payable in respect of any sale or purchase, or if tax
is payable, the point and rate thereof; or
e)
any activity carried out in any goods amounts to or results in
manufacture of goods and the Commissioner shall decide such disputes
on application by a dealer or by any other person.
In
this case the application is filed by an advocate and the clarification
sought for are of general character, No evidence has been produced
to prove that the issue sought for clarification involves a dispute
that would warrant the issue of a clarification U/s. 59A. Hence
the application is not entertainable and thus declined.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
Sri.Hariharan.K.S
Advocate
Adam Plaza
North parur, Pin 683 513
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub: KGST Act,1963- Clarification U/s.59A- rate of works contract-
tax plus AST on contracts
engaged by Bharat Sanchar Nigam Ltd.- Orders issued.
Read:-
1. Application dt. 30.04.02 put in by B.S.N.L., TB Road, Palakkad-14.
2.Posting
Notice No.C3.11280/02/CT dt. 30.05.02 and 19.06.02.
ORDER
No.C3.11280/02/CT DT.22.03.03
M/s. Bharat Sanchar Nigam Ltd, has requested to clarify
the rate of works contract tax and Additional Sales Tax to be
deducted from registered as well as unregistered contractors engaged
by B.S.N.L. in respect of the following various items of work.
1.
Laying of under ground cable- The work includes trenching of the
road and laying different sizes of cable. The entire cable is
supplied by the department and the bricks which are used for protection
is supplied by the contractor and also the position if the brick
is supplied by the department separately.
2.
Repair of telephone instruments. The tender quotes the rate of
repair per instrument which includes cost of spare component used
for replacement during the repair.
3.
Annual maintenance contract for engine alternator/ AC units. The
rates are quoted separately for replacement of the component and
for servicing/maintenance of the items.
4.
Annual Maintenance Contract for fire detection system. The rate
is inclusive of replacement of faulty component, if any arise
during the period of contract.
5.
Annual maintenance contract for telephone exchanges, computers
printers etc. The rate is quoted per line of the capacity/per
unit which includes cost of components if any replaced by the
agency which is not shown separately.
6.
Laying of PLB/HDPE pipes and pulling of OF Cables. All the materials
in the case are supplied by the B.S.N.L.
7.
Whether Central PSUs like ITI, HCL, TCL, ECL etc are exempted
from payment of any work contract tax.
The case was posted for hearing and C.Sunitha, Dy. General Manager
(P&A), BSNL appeared and was heard on 12.07.02. The points
sought for are clarified as follows. 1.
Regarding laying of under ground cable if the cable is supplied
by M/s. BSNL and if the same has suffered tax within the state
then the transfer of material involved in the contract is brick
only and the transfer of the same in the work is also in the form
of goods. Then the rate applicable is the rate of goods only as
per Sec. 7 (7B) of the KGST Act, 1963. Then tax at the rate of
4 % plus 15 % AST on the value of bricks alone need be deducted.
If the BSNL supplies bricks which have suffered tax within the
state, then no deduction need be made. 2.
Repair of telephone instruments which includes cost of spare parts
also and the rate quoted is not separately given then it will
come under Sec. 5(iv) (b). Then as per Sec. 7 (7B) the works contract
tax deductible by the awarder is 5 % in case of registered dealers
and 70 % of the schedule rate in case of unregistered dealers
and it will come under serial No.22 of IV Schedule.
3.
Annual Maintenance contract for engine alternator/ AC units- Since
the rate is quoted separately in respect of goods used in the
works Contract and the Labour portion is divisible as per section
7 (7B), the awarder need to deduct only tax due on the material
at the relevant rate as per schedule I of the KGST Act including
AST. 4.
Annual maintenance contract of fire fighting system which is inclusive
of replacement of faulty components, then it becomes a composite
contract and will fall under Sec.5 (IV) (b) and hence the rate
applicable is 5 % in case of registered dealers and 5.6 % in case
of unregistered dealers. 5.
Regarding annual maintenance of telephone exchanges, computer,
printer etc- the rate applicable is 5 % incase of registered dealers
and 5.6 % in case of unregistered dealer vide Sl.No.8 and 9 of
IV schedule. 6.
In the case of laying of PLB/ HDPE/ pipes etc, if BSNL supplies
all the materials and if the same has suffered tax within the
state, then the work involved is only earth work (ie pure Labour
contract) then no works contract tax need be deducted.
7.
Regarding works contract tax deductable by the awarder if the
work is undertaken by PSUs or other contractors there is no distinction
as per KGST Act and no exemption is granted to PSUs also. Hence
PSUs are also liable to pay works contract tax.
The points sought for are clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner(General)
To
The General Manager (Telecom)
B.S.N.L, TB. Road
Palakkad. 678 014
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub: KGST Act,1963- Clarification U/s.59A- rate of tax of PVC
Pipes- orders issued-
reg:
Read.
1. Application dated 26.10.02 put in by All Kerala Small Scale
PVC Pipe Manufactures
Association.
ORDER No.C3.2177/03/CT
Dt.11.04..03
M/s. All Kerala Small Scale PVC Pipe Manufactures Associations
has requested to clarify the rate of tax applicable to PVC Pipes.
Sri.N.Suresh, President of the Association appeard on 17.01.03
and was heard. There is no ambiguity as to the rate of tax applicable
to PVC pipes as the same is specifically included in the schedule
to the KGST Act. As per serial no.113 of the 1st Schedule
to the KGST Act, PVC pipe is taxable @ 12 % from 1..1..00.
The question referred to is clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
Sri. N. Suresh
President, All Kerala Small Scale PVC Pipe-
Manufacturers Association.
C/o Chloroplast, PB No.1
Koovappady, Ernakulam 683 544
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub: KGST Act,1963- Clarification sought for rate of Panmasala
Containing Tobacco
(Gutkha)
sold under the brand name "Tulsimix" manufactured by
Dharampal Sathyapal Ltd. Noida- orders issued reg:-
Read:- 1. Application dt.18.06.02 putin by M/s. Ambal Traders,
Kochi
2.
Posting Notice No.C3.27831/02/CT Dt. 01.07.02.
ORDER No.C3.27831/CT/2002/Dt.26..04..03
M/s. Ambal Traders, Kochi, has sought clarification regarding
the rate of tax in respect of panmasala containing Tobacco (Gutkha)
sold under the brand name "Tulsimix".
2. Sri.Santhosh P. Abraham, Advocate appeared and he was heard.
He contended that "tulsimix" panmasala contains tobacco,
betelnut, catechu, lime flavour permitted spices and saffron.
Tulsimix is an excisable commodity covered under the heading 2404.40
of Central Excise Tariff Act 1985. Panparag (Gutkha) and tulsimix
(Gutkha) are the same.
3.In Pukraj Jethaji Vs State of Kerala (1999) 6 KTR 480 the Hon'ble
High Court of Kerala held that panparag based on tobacco will
surely not be consumed by those who are not used to tobacco and
there are two preparations, one with tobacco and the other with
out tobacco are to be considered on the separate footing in common
parlance also. In common parlance the two preparations with tobacco
and without tobacco are different. If one is used to tobacco preparation
then he will surely ask only for that preparations. There is no
difference in these preparations. All are arecanut based preparations.
There may be some difference in flavor of each. Such preparation
but in essence they are commodity understood as one and the same
preparation and they serve the same purpose. But in no case can
they be equated with tobacco based preparation.
The consumers of tobacco based preparation are different from
those who are not used to tobacco.
As per item 57 of the 3rd schedule to the KGST Act
the following items are exempted from tax.
Tobacco
and its products covered under heading Nos.2403.11,2403.12,2403.13,
2403.14,2403.15,2403.19,2404.10,2404.20,2404.31,2404.40,2404.50
and 2404.99 except unmanufactured tobacco on which duty is levied
under the Addl. Duties of Excise (Goods of Special Importance)
Act 1957 Central Act 58 of 1957.
In the circumstances "Tulsimix (Gutkha) with tobacco
will be an item exempted from tax under the above entry.
The question referred to me is clarified accordingly.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner(General)
To.
M/s.Ambal Traders,Kochi
Through Vijayaraghavan & Devi
Advocates. High Court Road.
Cochin, Pin 682 031
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act,1963-Clarification U/s.59A- Whether consumable
for works contract
purpose
can be procured by issuing C Form- declined- order issued.
Read:- 1. Application dt.26.03.02 put in by M/s. T.V.Sundram Iyengar
& Sons Ltd.
Thiruvananthapuram.
2.
Posting Notice No.C3.10162/02 Dt.17.04.02
ORDER No.C3.10162/02/CT Dt.26.04.03
M/s. T.V.Sundram Iyengar & Sons Ltd, Kaimanam, Thiruvananthapuram
has sought a clarification as to, whether they can procure the
material which are used in washing of cars, lubrication, warranty
maintenance, accident jobs and other regular works of the vehicle
by issuing C Form.
Sri.S.Krishnan,
authorised representative appeared and was heard on 10.05.02.
The subject matter in which clarification requested, relates to
CST Act. The commissioner is empowered U/s. 59A of the KGST Act
only to issue clarification related to KGST Act and therefore
the request for clarification is rejected as not entertainable.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
M/s.T.V.Sundram Iyengar & Sons Ltd.
Kaimanam.P.O, Neeramankara
Thiruvananthapuram 695 040
PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: V. Somasundaran.I.A.S
Sub:- KGST Act,1963- Clarification U/s.59A whether exempted from
ST for the period from 01..01..00 to 31..03..00- declined- orders
issued.
Read:-
1. Application dt. 23.11.02 by M/s. Sree Ananda Rice Mill &
KMA Oil Mill, Palakkad.
ORDER No.C3.57581/02/CT Dt. 26.04.03
M/s.
Sree Ananda Rice Mill and KMA Oil Mill Palakkad has requested
to clarify whether the unit aided by Kerala Khadi and Village
Industries Board is exempted from ST for the period from 01..01..00
to 31.03.00 for its turnover.
The applicant have requested to waive the opportunity of hearing.
On further verification it is ascertained that the applicant have
filed appeal before the appellate authorities and the appeal is
not yet disposed of.
Since an appeal is under consideration of the appellate authority
the commissioner is not empowered to issue clarification U/s.
59A of the KGST Act and therefore the request for clarification
is declined.
Sd/
Commissioner
/Approved for Issue/
Deputy Commissioner (General)
To.
Sri.S.Krishnan Kutty.F.C.A
Chartered Accountants