THIRUVANANTHAPURAM
PRESENT; SRI.PAUL
ANTONY. I.A.S.
Sub:- KGST Act 1963 – Clarification u/s 59A-whether KSRTC is eligible
for concessional rate of 4% - Clarified orders issued – Reg.
Read:-
Application in Form No. 31D dated 05.03 2006 filed by KSSIA, Cochin.
ORDER
NO. C7-12214/06/CT DATED: 05.04.2006.
The Kerala State Small Industries
Association, Kochi 18 has filed an application for clarification u/s 59A of
KGST Act 1963 as to whether KSRTC is eligible for the concessional rate of tax
of 4% is applicable to state Government Department in terms of entry 2 of
schedule III to notification SRO 1091/99.
The applicant association have
queried KSRTC is eligible for the concessional rate of tax of 4% as per SRO
1091/99 since Director of Transport figures in Appendix II as item No.33.
The Transport Commissioner is the
head of Department of Motor Vehicles, an independent department which has no
nexus with that of KSRTC. Similarly
Director, Transport does not represent the KSRTC, since KSRTC is an autonomous
body and not specifically listed under the said SRO is not eligible for
concession. Hence KSRTC is not eligible
for this concessional rate.
The point sought for is clarified as
above.
Sd/ Commissioner.
11. PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
PRESENT; SRI.PAUL ANTONY. I.A.S.
Sub:-
KGST Act 1963 – Clarification u/s 59A – rate of tax tractor mounted
Compressor and its spares- reg:
Read:- Application dt. 23.12.01 of M/s. A.S
Syndicate, T.B.Road, Kottayam.
ORDER NO.
C3-72676/04 DATED 31.03.2006.
M/s. S.S. Syndicate,
Marottiparambil, Kottayam has sought clarification as to the rate of tax of
Tractor Mounted Compressor and its spares.
Authorised
Representative of the applicant was heard.
He requires clarification as to whether Tractor Mounted Compressor and
its spares will come under,
Entry 135 of 1st schedule
to KGST Act 1963 taxable @ 8% or
Entry 84 of 1st schedule
to KGST Act 2963 taxable @ 12%.
Compressor is not a
spare part but a finished good, which comes under the item machinery. So Tractor mounted Compressor and its spares
are taxable @ 12% falling under the heading machinery under entry 84 of the 1st
schedule to the KGST Act 1963.
The
point sought for is clarified accordingly.
Sd/
Commissioner.
12. PROCEEDINGS OF THE COMMISSIONER, COMMERCIAL TAXES
THIRUVANANTHAPURAM
Sub:- KGST Act 1963-
Clarification U/s.59A-Rate of tax applicable to Residue grade-4 Bulk-reg:
Read: - Application dt.
Nil failed by Sri.P.B.Kabeer Khan, Muvattupuzha
ORDER
No.C3.1152/06/CT Dt. 07.03.06
Sri.P.B.Kabeer
Khan,Muvattupuzha has requested to clarify the following points.
a) The rate of tax
applicable to residue grade-4 bulk under KGST Act for assessment years
2001-02,2002-03 and 2003-04.
b) The rate of CST to be
collected under KVAT Act by a trader effecting on interstate sale of petroleum
products under circumstances where c form is not obtained.
As per entry 108 (vi)
of First schedule of the KGST Act, the rate of tax applicable to residue
grade-4 bulk for the year 2001-02 is 24 %. For the year 2002-03 and 2003-04,
the item is taxable @ 40% vide entry 108 (vi) of first schedule. But as per SRO
1091/99 vide entry 28(vi), the rate of tax has been reduced to 30 %.
The question raised as point (b) above doesnot comes under the
purview of the KGST Act 1963.Hence not entertainable under section 59A of the
KGST Act, 1963.
The points raised are clarified accordingly.
Sd/
Commissioner.
13. PROCEEDINGS OF THE COMMISSIONER,COMMERCIAL
TAXES
THIRUVANANTHAPURAM
Sub:- KGST Act 1963-Clarification under section 59A- Rate of tax
applicable to Axles, Axle shafts-orders issued- reg:
Read;_ 1.Application
dt. 22.03.04 of India Motor Parts and Accessories Ltd.
2.Posing Notice Dt.
09.08.05
ORDER No.C3.16599/04/CT Dt.
13.03.06
As per the 1st
paper read above M/s. Indian Motor Parts & Accessories has preferred an
application under section 59A of the KGST Act 1963 seeking clarification on the
rate of tax application to axles and axles shafts.
As per the notice read
as second above the applicant was given an opportunity of being heard.
Sri.Venkitaraman, Asst.Accounts Officer appeared and was heard on behalf of the
applicant.
The matter was examined
in detail with reference to relevant provisions of KGST and CST Acts.
As per
entry 2(ii)(n) of second schedule to KGST Act 1963, “Wheels,Tyres, Axle and
wheel sets are taxable @ 4 % Section 14 of the CST Act 1956 enumerated the list
of goods of special importance in interstate trade and commerce in which entry
XIV includes wheels, tyres, axles and wheel sets. These declared goods can only
be taxed at a single point not exceeding a rate of 4 %. Further the Hon’ble
Supreme Court held that the impugned items being declared goods the same cannot
be taxed at a rate in excess of 4 percent.
For the above reasons
stated, it is clarified that axles and axle shafts are items taxable @ 4 % as
per second schedule of the KGST Act, 1963.
The issue referred to is clarified
accordingly.
Sd/
Commissioner
THIRUVANANTHAPURAM
Sub:- KGST Act
1963-clarification U/s 59A-whether certain works attract tax under KGST-
clarified- orders issued.
Read;_ Application dt.
30.06.03 filed by Sri.Abraham Jose, Piravom.
ORDER No. C3.37721/03/CT Dt.
14.03.06
Sri.Abraham
Jose, Vellappillil House,Piravom has requested to clarify as to whether the
following works attract tax under KGST Act for the financial year 1997-98
onwards.
Trial
boring and testing of soil samples
Earthern bund
If taxable, whether eligible for compounding under section 7(7) of the
KGST Act at 2 % as civil works contract.Applicant has further requested to
clarify whether tax is leviable on clearing of trees, plants etc.
In order to constitute
a taxable event in works contract, there must be transfer of material involved
in the work whereby contractors materials are incorporated n the work. When
such materials are incorporated, it amounts to deemed sale by applying the
principle of accretion. As regards trial boring and testing of soil samples no
contractor materials are incorporated in the work and is purely labour in
nature. Therefore work contract tax is not leviable.
In
the construction of earthen bund, red earth and sand are used. The payment
given to the contractor represents the value of such goods. Here transfer of
contractor’s material is involved in the work and therefore is taxable. This
item of work will fall under entry 22 of the Fourth Schedule to the KGST Act.
The tax leviable w.e.f 01.04.1997 is @ 10 % and from 01.01.2000 onwards the
rate of tax is 8 %. From 01.04.2004 onwards this work can be compounded at 2 %
but in the period prior this type of work is not compoundable at 2 % under
section 7(7) of the KGST Act.
As
regards clearing of trees and plants, no contractors material are incorporated.
It is purely a labour work and is therefore exempted from tax.
The
points raised are clarified accordingly.
Sd/
Commissioner
THIRUVANANTHAPURAM
Present: Paul
Antony.IAS
Sub:- KGST Act
1963-Clarification U/s. 59A-rate of tax applicable to Agri-Gro- a growth
regulator- orders issued- reg:
Read:- 1.
Application dt. 09.11.01 put in By M/s. Sree Narayanan Gas
Agencies,Vadakkancherry.
2.Posting Notice dt. 10.02.06.
ORDER
No.C3.61445/01/CT Dt. 16.03.06
Sri.V.G.Sukumaran,Sree
Narayana Gas Agencies, Nemmara Road, Vadakancherry Palakkad has sought
clarification with regard to the rate of tax applicable to Agri-Gro-a growth
regulator from U.S.A under the KGST Act 1963.
In
response to the notice issued, authorised representative of the applicant
appeared and was heard Agri-Gro, a
growth regulator is a mixture of chemical components which increase nutrients
of the soil. As per entry 33 of the first schedule to KGST Act, 1963, Chemicals
including caustic soda, caustic potash, soda ash, sodium sulphate, sodium
silicate, sulphur, chemical components and mixtures not elsewhere classified in
the schedule is taxable @ 12 %. The item Agri-gro comes under this category is
therefore taxable @ 12 %.
The
question referred is clarified accordingly.
Sd/
Commissioner
THIRUVANANTHAPURAM
Present: Paul
Antony.IAS
Sub:- KGST Act 1963-
Clarification under section 59A- Medium Scale Industries Purchase Tax
Exemption- Seller is being taxed- orders issued- reg:
Read:-
1. Application put in by Prima Industries Ltd. Dt. 7..9..2004
2.Posting Notice Dt. 13.12.05
ORDER NO.C3.53252/04/CT DATED
24.03.06
M/s. Prima Industries,
Elamakkara Cochin has sought for clarification U/s. 59A of KGST Act 1963, as
per the 1st paper read above.
As per the notice
second cited the applicant was given an opportunity of being heard.
Sri.K.Govindapillai , Advocate was heard on behalf of the unit.
The
applicant dealer M/s. Prima Industries Ltd is purchasing coconut oil cake as
their raw materials and theor version is that these purchase are exempted from
tax vide SRO 1729/93. The question to be clarified is as to whether the
purchase turnover of coconut oil cake is
eligible for exemption under SRO 1729/93 at the hands of applicant dealer and
if so their selling dealer M/s. Marico Industries claim sales tax exemption on
their corresponding sales.
The applicant dealer is an
industrial unit and is enjoying tax exemption under the SRO 1729/93. Sales Tax
exemption was granted in accordance with the provisions contained in the said
SRO. As per the SRO Tax exemption will be given to new industrial units under
Medium and Large Scale industries for a period of seven years from the date of
commencement of commercial production in respect of the tax payable by such
units under the KGST Act 1963 on the turnover of sale of goods manufactured and
sold by them within the state and on the turnover of goods taxable at the point
of last purchase in the state which are used by such units for manufacturing
other goods for sale within the state or interstate and in respect of surcharge
payable under section 5 of the Kerala
Surcharge on Taxes Act 1957. So the SRO
is very specific and clear that turnover of those goods, which are taxable at
the last purchase point alone, are eligible for exemption. This has been
clarified and upheld by the Hon’ble Supreme Court in the case of Vattakulam
Chemical Industries Ltd Vs State of Kerala reports in (2002) 10 KTR 69 SC. Here
the goods coconut oil cake purchased by the applicant dealer is not a commodity
taxable at the point of last purchase in the state but taxable at the first
sale point in the state under entry 40 of the 1st schedule to the
KGST Act 1963. So the applicant dealer M/s. Prima Industries Ltd is not
eligible for availing of the exemption on the purchase turnover of coconut oil
cake.
Turnover
of sale of coconut oil cake is taxable at the hands of the selling dealer M/s.
Marico Industries Ltd since coconut oil cake is taxable at the point of first
sale in the State by a dealer who is liable to tax U/s. 5 of the KGST Act 1963.
The
issue raised by the applicant is clarified accordingly.
Sd/
Commissioner.
THIRUVANANTHAPURAM
Present: Paul
Antony.IAS
Sub:- KGST Act 1963- Clarification U/s. 59A-Actizyme- Rate of tax-
orders issued-reg:
Ref:- 1. Application dt. 10.06.03 of Crystal
Bio-tech and Hygienics.
2. Posting Notice Dt. 31.01.06
M/s. Crystal Bio-tech
and Hygien has preferred an application U/s. 59A of the KGST Act 1963 seeking
clarification on the rate of tax applicable to “Actizyme” a bacteria based
bio-enzyme preserved in the form of pellets.
The applicant was given an opportunity of being heard but he
was absent . Hence the case is disposed on merits.
Entry 51 to first
schedule of KGST Act 1963 read as “Detergent Powder flakes and liquids and all
kinds of cleaning powder and liquids and Laundry brightners” All kinds of
cleaning materials are taxable @12 % under entry 51 of first schedule. Actizyme
is a bioenzyme pellet used for cleaning organic waste materials not containing
harmful chemicals. Therefore the item being a cleaning material comes under
entry 51 of first schedule and therefore taxable @ 12 %.
The issue raised by the applicant is
clarified accordingly.
Sd/
Commissioner.
THIRUVANANTHAPURAM
Present: Paul
Antony.IAS
Sub:- KGST Act
1963-Clarification u/s. 59A- acquisition of ADU Whether taxable under CST Act
1956- Orders issued- Reg:
Read:- 1.Application
dt. 11.12.03 of Indian Rare Earths Ltd,
Udyaogamandal.
2.Posting Notice
No.C3.69792/03/Dt .13.09.05
M/s. Indian Rare Earths Ltd, Udyogamandal has
preferred an application under section 59A of KGSTAct 1963 requesting
clarification on the following points.
1) Whether there is any
sales tax liability on compulsory acquisition of ADU which is covered under the
prescribed substance clause 2(g) of Atomic Energy Act, 1986 which is not a
deemed sale under clause II A of the Atomic Energy Act 1986.
2) Whether Indian Rare
Earths Ltd is eligible for refund of CST collected and paid to department for
the earlier period 1999-2000 onwards.
The applicant was given
an opportunity of being heard. The points raised were examined and following
orders are issued.
Indian Rare Earth Ltd, is receiving only
processing charges and no transfer of materials from IRE is involved in the
transaction. Since there is no transfer of materials for consideration in the
transaction there is no sale involved in the transaction. A contract, which does not involve any
transfer of goods, shall not be deemed to be a sale.
The charges received by
IRE Ltd from BARC are labour charges only. It is not exigible to tax under KGST
Act at the hands of IRE Ltd, Aluva. No clarification under Sec.59A can be
issued with regard to transactions involved under the CST Act.
The issues raised by the applicant is clarified as above.
Sd/
Commissioner
THIRUVANANTHAPURAM
Present: Paul Antony.
IAS
Sub:- KGST Act 1963- Clarification under section 59A- Chairmen Cochin- orders issued- Reg:
Read:-
1. Application filed by M/s. Chairman, PT.Usha Road, Cochin
2.Posting notice Dt. 25.02.06
ORDER No. C3.48333/03/CT Dt.
05.04.06
M/s. Chairman, P.T.Usha Road, Cochin
682011 has preferred an application under section 59A of KGST Act 1963. As per
the second reference notice issued to party and the opportunity of being heard
was not availed by the party. Hence the following clarification orders are
issued on merits. The points sought for clarification are.
1. Whether Cochin Shipyard
is eligible for the concession as per SRO 1090/99 for the purchase of furniture
supplied by them to a ship under repair.
2. Whether the stand taken
by the assessing authority regarding additional tax is correct.
3. Whether the chairs
purchased by shipyard was used in the manufacturing or processing of goods and.
4. The correct rate of tax
payable by them applicant in the said transaction.
As per entry 3 of
schedule III of SRO 1090/99 any industrial unit including public sector
undertaking can purchase any goods other than petroleum products at the
confessional rate of 5 % for use in manufacture or processing of goods by them
or on job work basis within the state.
In this case, what was
done by the Cochin Shipyard is the goods so purchased was used for repairing
works. Repairing activity is not manufacturing activity but maintenance SRO
does not permit purchase of goods at the concessional rate for use in repairing
works. So the purchase effected by M/s. Cochin Shipyard by furnishing
certificate as provided in SRO 1091/99 for use in repairing works is irregular
and the selling dealer M/s. Chairmen is liable to pay tax as per the rate
specified in the respective schedule to the KGST Act. In this case @ 12 %.
The points raised by the applicant are clarified as above.
Sd/
Commissioner.
THIRUVANANTHAPURAM
Present: Paul Antony.
IAS
Sub:- KGST Act 1963-
Clarification U/s. 59A- rate of tax on tractor, trailer and tiller
trailer-orders issued- reg:
Read: 1. Application
dt. 19.08.05 of A.D , Kannappan, Proprietor, Sree Cheran Trailer,
Kozhinjamapara, Palakkad.
2.Notice dt. 25.02.06
ORDER No.C3.44162/05/Dt.
05.04.06
As per the first paper
read above, Sri.A.D Kannappan, Proprietor, Sree Cheran Trailer, Kozhinjampara
has preferred an application under section 59A of the KGST Act 1963 seeking
clarification on the rate of tax on tractor, trailer and tiller trailer.
The applicant was given
an opportunity of being heard on
16.03.06 as per notice second cited. Sri. G.Hariharan, Adovate appeard on
behalf of the application and he was heard.
The case has been examined in detail with relevant
provisions of KGST Act 1963.
As per entry 157(1) of
the First schedule to KGST Act, 1963, “Tractor and Power tiller” are taxable @
4 %. As per entry 135 of the First schedule, “Spare Parts and Accessories of
tractors and power tillers are taxable @ 8 %.
The
issue raised by the applicant is clarified accordingly.
Sd/
Commissioner
THIRUVANANTHAPURAM
Present: Paul Antony.
IAS
Sub:- KGST Act 1963- Clarification under section 59A M/s. Ushus
Technologies (P) Ltd, Technopark,orders issued- reg:
Read: 1. Application
filed by M/s. Ushus Technologies (P) Ltd, Technopark,Tvpm dt. 02.11.04
2. Posting notice
Dt. 25.02.06
ORDER No. C3.62962/04/CT Dt. 05.04.06
M/s.
Ushus Technologies (P) Ltd, Technopark, Thiruvananthapuram has preferred an
application under section 59A of KGST Act 1963. As per the second reference
notice issued to party and the opportunity of being heard was not availed by
the party. Hence the following clarification orders are issued on merits.
The
point to be clarified is as to whether the applicant being 100% EOU and
software Development units, can purchase
tools, jigs and moulds, licenced softwares, furniture, interior, UPS,
photocopier, EPABX, OHP, Digital projectors,
Air Conditioner, Transport vehicles, Computers, Printers etc without payment of
tax in view of SRO 1090/99.
As
per Sl.No. 7 to schedule III of SRO 1090/9, 100 % EOU’s can purchase industrial
raw materials, plant and machinery including components, spare parts, tools and
consumables in relation there to other than petroleum products without payment
of tax. As per the said SRO the
specified goods can be purchased without payment of tax but the goods purchased
should be in relation thereto out of the goods listed by the applicant, the
goods related to software developments are UPS, Computers and Printers. All
others are not essential for Software development. So the applicant dealer can
purchase UPS, Computers and Printers without paying tax as per SRO 1090/99
The point raised by
the applicant clarified as above.
Sd/
Commissioner
22. PROCEEDINGS OF THE COMMISSIONER
OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
PRESENT:.PAUL ANTONY. I.A.S.
Sub:-
KGST Act 1963-Clarification u/s 59A-Exemption from purchase tax on raw
rubber-Reg.
Read:-
1.Application dated 23.07.02 from Kerala State Small Industries
Association, Manjeri.
2. Posting notice dated 31.01.06.
ORDER NO. C3- 35393/02 DATED 31..03..2006.
The Kerala State Small
Industries Association, Manjeri has sought clarification as to whether raw
rubber used by dealers in Kerala for making compound rubber, which is exported,
is exempted from purchase tax.
The applicant has not
availed the opportunity given for hearing and hence the case is disposed of on
merits as under.
Compound Rubber and
Natural Rubber are two different commercial commodities. Therefore condition
specified in section 5(3) of the CST Act 1956 is not fulfilled and hence
exemption cannot be granted.
The
point sought for is clarified accordingly.
Sd/
Commissioner.
23. PROCEEDINGS OF THE COMMISSIONER
OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
PRESENT; SRI.PAUL
ANTONY. I.A.S.
Sub:-
KGST Act 1963-Clarification u/s 59A – M/s.Elixir foods and
Tradings,Cochin- Reg.
Read:-1. Application dated 14.06.02 of M/s.
Elixir Foods and Trading, Cochin.
2. Posting notice No.
C3-66634/04 dated 31.01.06.
ORDER NO. C3-66634/04 DATED: 31..03..2006.
M/s.Elixir Foods and
Trading, Vazhakkala, Cochin has sought for clarification as to the rate of tax
on dehydrated pieces and powdered form of vegetables such as Onion, Garlic,
Potato, Tamarind, Mint leaves, Carrot, Cabbage, Raw green chilly, etc,if the
products are brought from outside Kerala and if the products are manufactured
inside Kerala.