1.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:-
KGST Act 1963- Clarification U/s. 59A- Rate of tax
of petroleum jelly for 2003-04 and 2004-05-clarified-
orders issued- Reg:
Read: 1. Application from IBC Pettro
2. Posting Notice No.C3.29924/04/CT Dt.
02.08.04
ORDER No.C3.29924/04/CT Dt. 23.04.05
Sri.M.Vijayan, IBC Pettro, Alencheril Building,
Ettumanoor, Kottayam has preferred an application
U/s. 59A and requested to clarify the rate of tax
of petroleum jelly for.
1.
2003-04
2.
2004-05 with schedule and Sl.No
The
applicant was heard. The contentions raised by the
applicant have been verified with reference to relevant
statutory provisions. As per entry 108(vi) of 1st
schedule other petroleum products not else where mentioned
in the 1st schedule or 2nd schedule
is taxable at 40 % during 2003-04 which has been reduced
to 30 % by Kerala Finance Act 2004 w.e.f 01.04.04.
But as per SRO 1091/99, vide entry 28 inserted by
SRO 258/02 the rate of tax payable on other petroleum
products have been reduced to 30 % w.e.f .01.04.02.
Further,
sub-clause (3) of SRO 1091/99 provides for reduction
of tax , interalia, to petroleum jelly when sold to
industrial units including Public Sector Undertaking
for use in the manufacture or processing of goods
by them or on job work basis within the state, subject
to production of a certificate in Annexure I. Thus
the rate of tax on petroleum jelly, payable when sold
to industrial units as detailed above will be at 3
% vide entry 3(iv) of schedule III to SRO 1091/99
upto 31.03.05.
Rate
of tax of petroleum jelly for the year 2003-04 and
2004-05 is clarified as 30 % vide entry 28 of schedule
II. to SRO 1091/99. When sold to industrial units
against production of certificate in Annexure I obtained
from the purchaser, the rate will be at 3 % vide entry
3 of schedule III to SRO 1091/99.
Sd/
Commissioner
2.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub: - KGST Act 1963- Clarification U/s. 59A- Rate
of tax on computer printer (inkjet and Dotmatrix),
Computer scanners, Electronic Cash Register, Digital
Cameras, Ink Catridge for printer, computer paper,
spares for computer- clarified- orders issued- Reg:
Read:- 1. Application Dt. 18.12.03 of Epson India
(P) Ltd.
2.Posting
notice No.C3.71147/03/CT Dt. 02.09.04
ORDER NO. C3.71147/03/CT Dt. 20.04.05
M/s.
Epson India (P) Ltd, Kurusupally Road, Ravipuram has
sought clarification as to the rate of tax applicable
to
1.
Computer Printer (Inkjet and Dotmatrix)
2.
Computer Scanners
3.
Electronic Cash Register
4.
Digital Cameras
5.
Ink Catridge for printer
6.
Computer Paper
7.
Spares for Printer
The
counsel for the applicant was heard. The applicant’s
contention is that the seven commodities on which
clarification has been sought come within the purview
of the I.T.Policy of the Government of India and electronic
products appearing in the list annexed to the I.T.Policy
are taxable at the concessional rate of 4 % under
the KGST Act.
The contentions of the applicant have been examined
with reference to the relevant statutory provisions.
All these goods come under the general classification
“Electronic Goods”. But as per entry 13 of schedule
II to SRO 1091/99 rate of tax on goods included in
the IT policy of India as detailed in the table to
the said SRO has been reduced to 4 % w.e.f. 23.07.01,
by the amendment made as per SRO 801/01.
Vide entry 3 of the table attached to the said SRO,
computer systems and peripherals; electronic diaries
are eligible for the reduced rate at 4 %. The word
peripheral means, “one that can be attached to and
used with it, but is not an essential part.” Thus
the first two items, ie. Computer printer and computer
scanner will fall under entry 3 of the table to the
said SRO and so are taxable at 4 % under the KGST
Act, 1963.
As regard to electronic cash register, the said item
does not find a place in the table to the said SRO.
Only those items specifically mentioned in the table
will get the benefit of entry 13 of SRO 1091/99. So
this item will squarely fall under entry 55 of first
schedule representing electronic goods and so is taxable
at 8 % under KGST Act.
With respect to item (4), ie Digital Camera, entry
15 of the table reads as follows:
“Transmission
apparatus incorporated reception apparatus digital
still image video cameras”.
The
contention put forth by the applicant is that “digital
cameras” will fall under this entry. But the entry
15 mainly relates to transmission apparatus. Going
through the wordings of the said entry it appears
that “only reception apparatus and digital still image
video cameras” incorporated with transmission apparatus
will fall under entry 15 and hence “digital camera”
will not come under entry 13 of 2nd schedule
to SRO 1091/99. Entry 109 of the 1st schedule
to KGST Act reads as follows:
“Photographic
and other cameras and enlargers, photostat, xerox
and photocopy machines, photoblocks, lenses, films
and plates, paper and cloth, photo albums and other
parts and accessories required for use there with.”
So the digital camera will come under entry 109 taxable
at 8 % under the KGST Act.
Ink cartridge is basically a tank filled with ink
used for printing in computer printers. The contention
of the applicant is that this will come under entry
“4” of the table which reads as “parts and accessories
of item 1 to 3 above”. The ink cartridge cannot be
treated as parts or accessories of the printer.
It is only a consumable of the printer for which there
is no specific entry in the table. Hence ink cartridge
will come under entry 73 of 1st schedule
to KGST Act, which reads as “Ink other than writing
ink” taxable at 8 % under KGST Act.
Rate of tax of computer paper has already been clarified
as per order No.C3.59473/01/CT Dt. 05.09.02 as coming
under entry 106(1) of 1st schedule to KGST
Act, 1963 taxable @ 8 %. In the circumstances a further
clarification on the point is not warranted.
The next item ie “spares for printer will come under
item No (4) of the table to SRO 1091/99 which reads
as “Parts and accessories”, since printer can be treated
as an accessory to computer system. Hence the item
“spares for printer” is taxable at 4 % under entry
13 of schedule II to SRO 1091/99.
The points raised are clarified accordingly.
Sd/
Commissioner
3.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:-
KGST Act 1963- Clarification U/s 59A- Whether plastic
caps can be treated as packing material- clarified
– orders issued. Reg:
Read:
1. Application dt. 30.07.04 put in by M/s. Consolidated
Thermo Plastics Products (P) Ltd.
2.Posting
Notice No.C3.44060/04/CT Dt. 17.02.05.
ORDER
No. C3.44060/04/CT Dt. 20.04.05
M/s.
Consolidated Thermo Plastics Products(P) Ltd, Udayamperoor,
Panchayath, Vaikom Road, Udayamperoor has preferred
an application U/s 59A and requested to clarify whether
plastic caps can be treated as packing material.
The
authorized representative of the applicant was heard.
The counsel has contented that the applicant is a
manufacturer of plastic caps for pet jars and tha
plastic containers cannot be used for packing unless
their caps are available.
By
virtue of entry 18 to SRO 1095/99, plastic containers
are notified as packing materials. Since plastic cap
is an essential part of plastic containers, plastic
caps are also to be treated as packing material. The
point raised is clarified accordingly.
Sd/
Commissioner
4.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:
- KGST Act 1963- Clarification U/s 59A- whether plastic
furniture manufacturing mould come under the category
of ingot moulds- orders issued- Reg:
Read:
1. Application dt. 08.10.03 put in by Shaji George,
Sales Tax Practitioner
2.Posting
Notice No.C3.55506/03/Dt. 10.11.03.
ORDER
No. C3.55506/03/CT Dt.13.05.05
Sri. Shaji George, Sales Tax Practitioner,
Thamarachalil Building, Kolenchery has preferred an
application U/s. 59A and requested to clarify whether
plastic furniture manufacturing moulds come under
the category of ingot moulds.
At the time of hearing, the applicant had
contended that the product is manufactured by using
“dies” and not by “moulds” and the intention of the
legislature in including ingot moulds in the second
schedule is to avoid generalization of all kinds of
moulds. Further argument raised was that the ingot
moulds only are taxable and all other moulds are exempted
from levy of tax. A certificate regarding the composition
of moulds was also produced, as per which the constitution
of plastic furniture manufacturing moulds is as follows:
Carbon 2 %
Nickel 1.5%
Chrome 0.5 %
Vanadium 1 %
Iron 95 % (70 % Iron + 30
% carbon)
As per entry 2(ii)(a) of 2nd schedule to
KGST Act 1963, “Pig Iron and cast iron including ingot
moulds, button plates, iron scraps, cast iron scraps,
rubber scraps and iron skull scrap” are liable to
tax @ 4 %.
From the details produced it is seen that though the
major constituent of the product is iron, it is not
pig iron or cast iron in its raw form, but contains
other metals and carbon. Hence it can be classified
as machinery which attracts levy of tax @ 12% if 1st
sale is at the hands of a trader. And if the 1st
seller is an SSI Unit, the tax rate will be 8 % vide
SRO 1091/99 up to 31.03.2005. The point sought for
is clarified accordingly.
Sd/
Commissioner
5.
PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:
- KGST Act 1963- Clarification U/s. 59A- Eligibility
of concessional rate of tax for the purchase of Rand
log from forest department on auction – clarified-
orders issued- Reg:
Read:
- 1. Application for clarification Dt.23.09.04
2.
Posting Notice No.C3.55712/04/Dt.17.02.05
ORDER
NO.C3.55712/04/CT/DT. 13.05.05
The
Manager, Government Instrument, Workshop, Wood Working
Unit, Pappanamcode has preferred an application U/s.59A
and requested to clarify as to whether they are eligible
for concessional rate of tax on the purchase of `Rand
Log’ from the Forest department, against Form 18 Under
section 5(3) of the KGST Act.
The case has been posted for hearing on 08.04.05.
Since the applicant did not appear, the case is disposed
of on merits as under.
Section 5(3) of the KGST Act 1963 provides for concessional
rate at 3 % to industrial units in respect of the
purchase of industrial raw materials for use in the
production of finished products inside the state for
sale.
In the present case the applicant can use Form 18
upto 31.03.05 and avail the concessional rate of tax
U/s. 5(3) of the KGST Act, provided the goods in question
are purchased as raw material and used for the production
of finished goods inside the state for sale. The point
sought for is clarified accordingly.
Sd/ Commissioner
6. PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL
TAXES
THIRUVANANTHAPURAM
Present: Sri.V.Somasundaran.IAS
Sub:-
KGST Act-1963- Clarification U/s. 59A- Whether sale
through a consignment agent is eligible for concessional
rate of tax available to an SSI unit- M/s. Parat Polymer
Extrusions- Clarified- orders issued- Reg:
Read:-
1. Application Dt. 10.10.04 put in by M/s. Parat Polymer
Extrusions.
2.Posting notice No.C3.59435/04/CT Dt. 09.11.04.
ORDER
No.C3.59435/04/CT Dt.19.05.05
M/s.
Parat Polymer Extrusions (P) Ltd, has preferred an
application for clarification U/s. 59A of the KGST
Act and requested to clarify whether sale through
a consignment agent is eligible for concessional rate
of tax available to an SSI Unit.
Authorized
Representative of the applicant was heard. The contentions
raised by the authorised representative have been
verified with respect to the relevant statutory provisions.
As
per entry 6 of Schedule II to SRO. 1091/99, SSI units
registered with Director of Industries and Commerce,
Kerala are eligible for concessional rate of tax at
8 % on the sale turnover of goods manufactured by
them.
Schedule
II of the said SRO provides concessional rate vide
sub clause (2) of clause 1 of SRO 1091/99. As per
the said sub-clause, persons specified in column 2
of schedule II only are eligible for concessional
rate as specified in column 4.
In
the present issue, the persons specified in column
2 is “SSI Units registered with Director of Industries
and Commerce”. So the intention is clear that the
concessional rate can be availed only by the SSI unit
and not by their nominees.
Since exemption given is on sale by SSI Units, sale
through a consignment agent is not eligible for exemption.
The point raised is clarified accordingly.
Sd/
Commissioner
7.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: Sri.V.Somasundaran.IAS
Sub:-
KGST Act 1963- Clarification under section. 59A- Whether
the sale proceeds of periodicals will come under the
purview of KGST Act- Clarified- orders issued- Reg:
Read:-
1. Application for clarification put in by M/s. Kala
Kaumudi Publications (P) Ltd.
2.
Posting Notice No.C3.29076/03/CT Dt. 21.07.03
ORDER No.C3.29076/03/CT Dt. 13.05.05
M/s.
Kalakaumudi Publications (P) Ltd, has sought clarification
as to whether the sale proceeds of the periodicals
viz. Kalakaumudi weekly, Vellinakshathram weekly,
Fire fortnightly, Snehitha monthly, Ayurarogyam monthly
and Muhurtham monthly published by them will come
under the purview of KGST Act 1963.
Sri.Abraham
Eapen, General Manager of the Company was heard. According
to him the periodicals published will come under the
definition of “Newspaper” and is therefore not liable
to tax.
The
contention raised by the applicant has been examined.
Periodicals are printed books and cannot be treated
at par with newspapers. Only newspapers have been
excluded from the purview of goods vide clause (xii)
of section 2 of KGST Act. By entry 5 of schedule III,
books, magazines, journals and weeklies are exempted
commodities. As such the commodities will come within
the purview of the KGST Act. Therefore the turnover
will have to be considered for registration purpose.
The point raised is clarified accordingly.
Consequent to the decision of the Hon’ble High Court
of Kerala in Kerala Electrical Traders Association
Vs. State of Kerala ((2004) 12 KTR 114), turnover
based levy of renewal fee of registration has been
dispensed with w.e.f. 2004-05 and hence inclusion
of turnover of the above commodities in the total
turnover of the applicant firm will have no impact
for the purpose of registration renewal.
Sd/
Commissioner
8.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:-
KGST Act 1963- Clarification U/s.59A- Rate of tax
of Vardan Biris- clarified- orders issued- Reg:
Read:-
1. Application dt. 20.01.04 of M/s. Dalmia Consumer
Care (P) Ltd., Kathakari Apartment, Tharmanam, Kochi
25.
2.Posting
Notice No.C3.4548/04/CT Dt. 08.03.04
ORDER
No.C3.4548/04/CT Dt. 21.05.05
M/s. Dalmia Consumer Care (P) Ltd, Kathakari Aprtment,
Tharnmanam,, Kochi-25 has sought clarification as
to the rate of tax of biris of with tobacco substitutes
known as vardan biris.
The counsel for the applicant was heard. The contention
of the applicant is that tobacco free beedi manufactured
by them would come under Entry 57 of 3rd
Schedule to the KGST Act and is therefore exempted
from tax. Copies of a few invoices issued for clearance
of products under the Central Excise Act were produced
in support of the claim that the product manufactured
by the applicant is subject to Addl. Excise duty.
Entry 57 of 3rd schedule reads as follws:
“Tobacco and its products covered under heading number
2401.90, 2403.11, 2403.12, 2403.13, 2403.14, 2403.19,
2404.10, 2404.20, 2404.31,2404.39, 2404.40, 2404.50
and 2404.99 except unmanufactured tobacco on which
duty is not levied under the addl. duties of excise
(Goods of Special Importance) Act 1957 (Central Act
58 of 1957)”.
The applicants contention was that their product
will come under sub-heading No. 2404.31 of the Central
Excise Tariff Act, which reads as follows: “Other
than paper rolled biris manufactured without the aid
of machines”
Entry 57 of schedule III to KGST Act, 1963 deals
only with tobacco and its products covered under the
heading numbers 2404.31 in chapter 24 of Central Excise
Tariff Act. Admittedly the applicant’s product is
a “Tobacco substitute” Tobacco substitute will not
cover under entry 57 of the 3rd schedule
to KGST Act.
There was no specific entry in the KGST Act for tobacco
substitute. The product will therefore come under
the residual entry 177 of 1st schedule
to KGST Act 1963 taxable @ 8 % up to 31.03.2005.
The points raised are clarified accordingly.
Sd/
Commissioner
9.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:- KGST Act 1963- Clarification U/s. 59A- Rate
of tax on Jam-clarified- Reg:
Read:-
1. Application dt. 30.06.04 of M/s. Anthoosons Agencies
2.Posting Notice No.C3.36660/04/CT Dt. 17.02.05
ORDER
No.C3.36660/04/CT Dt. 04.07.05
M/s. Anthoosons Agencies, XL/2447, Jews Street, Ernakulam
has preferred an application U/s. 59A of the KGST
Act 1963 and requested to clarify the rate of tax
on Jam.
Applicant was heard. The question to be considered
in this case is whether the commodity “Jam” comes
under entry 62 of the 1st schedule which
reads as “food including vegetative or animal preparations
sold in airtight containers and food colours, essences
of all kinds and powders or tablets used for making
food preparations” or under entry 141 of 1st
schedule which reads as “Squashes, sauces, fruit juices,
fruit pulp, soda, mineral water, Horlicks, Boost,
Bournvita, Complan, Glucose D, Glucovita and similar
other items whether or not bottled, canned or packed”
Admittedly there is no specific entry for the commodity
“Jam” as such. But this is a commodity, which is made
from fruits with sugar, pectin, citric acid etc.
The contention put forth by the applicant is that
the product meets the descriptions in entry No. 62
and if the rule of “ejusdem generis” is applied in
the strict sense it cannot be placed under a similar
item under entry 141.
The words in entry 62 that can be connected with the
commodity in question is food including vegetative
preparation. Food is a material consisting essentially
of protein, carbohydrate and fat used in the bodybuilding
of an organism to sustain growth, repair and vital
processes and to furnish energy. But in common parlance
“jam” is not being used by itself as a food item.
As regards to vegetative preparation, the said item
covers the heading no. 20.01 of Central Excise Tariff
Act, which reads as follows.
“Preparations of vegetables, fruits, nuts or other
parts of plants including jams, fruits jellies… etc”.
The words preparations of “vegetables” and fruits
are distinctively mentioned in the entry. By the word
‘including’ other commodities like “jam” “fruit jellies”
etc. are brought into the said entry. This means that
preparations of ‘vegetables’ and ‘fruit’ are treated
distinctively. So also Jam and fruit jellies are treated
as distinct commodities having independent identities.
Thus the commodity Jam will not come under the extended
version of food in the entry 62 ie including vegetative
preparation’.
As regards to the preparation of jam, the mass of
fruit pulp and juice extracted from ripe fruits with
sugar and other ingredients are subjected to treatment
to a thick consistency to form the commercially known
commodity “jam.” So essentially this is a fruit pulp
preserve under entry 141 which, interalia, relates
to fruit products like squashes, sauces, and fruit
juices, fruit pulp…. etc.
The contention of the applicant regarding the rule
of ‘ejusdem generis” has also been analysed. The
rule of ejudesem generis means “general clause of
residuum doesn’t comprehend those things which may
not be of the same kind with those which have been
specifically expressed.”
This rule is a rule of construction and not a rule
of substantive law and is hardly applicable when the
intention is clear. Here by making a specific entry
141 in the 1st schedule the intention of
legislature to levy tax on fruit product at a separate
rate other than those applicable to ‘vegetative preparations’
is clear and going by the manufacturing process it
is clear, without any ambiguity, that for the reasons
detailed above, the commodity is a fruit pulp preserve
which is specifically mentioned in the said entry.
Therefore the commercially known commodity “jam” is
classifiable under the entry 141 of the 1st
schedule of the KGST Act taxable at 20 % up to 31.03.05.
The point raised is clarified accordingly.
Sd/
Commissioner
10.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:- KGST Act 1963- Clarification U/s. 59A- Rate
of tax applicable on surgical operation theatre lights-
clarified- orders issued- Reg:
Read:-
1. Application dt. 26.08.04 of M/s. Sunbrite Systems
2.Posting Notice No.C3.39132/04/CT Dt.
29.10.04
ORDER
No.C3.39132/04/CT Dt. 07.07.05
M/s. Sunbrite Systems, TC.24/564, Thycaud, Thiruvananthapuram
has preferred an application for clarification under
section 59A of the KGST Act 1963 and requested to
clarify as to whether the surgical operation theatre
lights can be classified under entry 145 of 1st
schedule to KGST Act.
The counsel for the applicant was heard. The applicant
is a dealer in operation theatre lights manufactured
by M/s Philips. She has been filing returns since
the beginning classifying the commodity as a surgical
equipment under entry 145 of the 1st schedule
taxable at 8 %. According to the applicant the product
can be used only in operation theatres, and has been
designed keeping in view of various requirements of
surgery. The assessing authority is proposing to tax
@ 12 %, including the product as electrical goods,
under entry No 54(i) of the 1st schedule.
The petitioner has requested for clarification whether
the product come under entry 145 or under entry 54(i)
of 1st schedule. It was also pointed out
that the product has received safety certification
from the Government of India and has been tested at
the Electronics Regional Laboratory at Kolkata.
The contentions of the applicant has been analysed
with respect to relevant statutory provisions entry
145 of the 1st schedule reads as follows:
“Surgical equipments and instruments, medical implants
and injection needle”
From the catalogue of the commodity and the certificate
of approval of STQC filed by the applicant it is seen
that the product is commercially known as “operation
theatre lights” which consists mainly a dome, spring
arm stroke, 4 to 8 12 V 50 W halogen lamps, colour
correcting filters, parabolic reflectors, power supply
unit with constant voltage transformer. Further there
is a narration in the catalogue to the effect that
further changes in the existing specification will
be in compliance with the regulations governing manufacturing
of medical equipments.
Operation Theatre lights is an amenity that attributes
to proper conducting of surgery. Though the object
of the commodity is to give very high illumination
and precise lighting in all positions in an operation
theatre, it cannot be treated as surgical equipment,
but it can be treated as medical equipment. The rate
of tax of 8 % is applicable only to “surgical equipments,
instruments, medical implants and injection needles”.
The commodity in question does not come under any
one of the above items and hence this would come under
item 54 of 1st schedule taxable @ 12 %
from 01.04.04. If the analogy applied in the case
of surgical table by the Hon’ble High Court in Megha
Telk Enterprises’ case reported (2003) 11 KTR 200
(Ker) is considered in this case, there is no equipments
or gudgets attached to this lighting system directly
connected with the surgery and hence it cannot be
classified as surgical equipment.
In view of the above, it is clarified that the commodity
surgical operation theatre lights will come under
entry 54 of the 1st schedule to KGST Act
1963 till 31.03.05.
Sd/
Commissioner
11.PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub: - KGST Act- 1963- Clarification U/s. 59A- Rate
of tax on CLYSAR Shrinking paper- Clarified- orders
issued- Reg:
Read: - 1. Application Dt. 11.12.04 put in by Sri.K.Surendran,
Essar Enterprises.
2. Posting notice No.C3.71001/04/CT Dt. 19.05.05
ORDER No.C3.71001/04/CT Dt. 11.07.05
M/s. Essar Enterprises, 8/2083, Gujarathi
Road, Kochi 2 has preferred an application under section.
59A of the KGST Act 1963 and requested to clarify
the rate of tax on CLYSAR shrinking paper.
M/s. Abdul Salam and Radhakrishnan Thampi,
counsels for the petitioners were heard. It was informed
that the commodity is used exclusively for packing
various articles such as books, stationery, cassettes,
video tapes, food products etc. The material is
supplied in rolls and sheets which are laid into a
machine, through which the shrunk film is stretched
and fixed on to the surface of the product to be packed.
In view of the facts and circumstances pointed
out, the commodity CLYSAR shrinking paper is classified
as packing material under entry 102 of 1st
schedule to KGST Act taxable @ 4 % till 31.03.05.
Sd/
Commissioner
12.PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present: Sri.V.Somasundaran.IAS
Sub:- KGST Act 1963- Clarification U/s. 59A- Rate
of tax on certain items- clarified- orders issued-
Reg:
Read:-1. Application Dt. 27.05.04 from M/s. Sinic
Electronics (P) LTd.
2. Posting Notice No.C3.28223/04/CT Dt. 17.02.05.
ORDER NO. C3.28223/04/CT Dt. 11.07.05
M/s. Sinic Electronics (P) Ltd has preferred
an application under section 59A of the KGST Act
1963 and requested to clarify the rate of tax applicable
to the following commodities.
1.
Note
Counting Machine
2.
Loose
Note Counter
3.
Note
binding machine
4.
Note
sorting machine
5.
Note
detecting machine
6.
Software
and IT Products
7.
Computer,
its parts and accessories
8.
Electronic
power products and its parts and accessories
9.
Automatic
Teller Machine
10.
Inverter,
vacuum cleaner, water purifier
11.
Other
electronic products
12.
Plane
paper, pre-printed paper and sleeted paper.
Applicant was heard. He has informed that he has been
paying tax @ 12 % + AST. He has requested for a confirmation
regarding rate of tax on the commodities mentioned
above.
As regards to items (1) to (5) and (8) and
(9), they are “a means or systems by which something
is kept in action or a desired result is obtained”.
As such these items are classifiable under the general
entry “machinery’. In Central Excise Tariff Act all
machineries are classified in Chapter 84 and 85 as
in this case. Automatic bank note dispensers, coin-sorting
machineries, coin counting and wrapping machines are
classified under the sub-heading 8472.00 of Heading
No. 84.72. Further all sorting, separating machineries
were also classified under chapter 84 as heading No.
84.74 and sub heading 8474.10. So all the above items
whether electronic or mechanical are classifiable
under the heading machinery. In the KGST Act there
is a specific entry for machinery ie entry 84(1) taxable
at 12 %. So item (1) to (5) and (8) and (9) referred
above will come under entry 84(i) of 1st
schedule taxable at 12 %.
There is a specific entry for computer in
1st schedule, ie entry 56 taxable @4 %.
Parts and accessories of computer will fall under
item, No. (4) of SRO 801/01 taxable @ 4 % w.e.f 23.07.01.
Software and IT products specifically mentioned in
SRO 801/01 will attract tax at 4 %.
Inverter is an electrical device and so will
fall under entry 54 of 1st schedule taxable
at 12 %. Water purifier will come under the entry
116, ie water filter and similar home appliances,
taxable at 12 %, while vacuum cleaner holds a specific
entry in schedule V as entry 10 taxable at 16 % (12
at 1st point and 4 at last point).
Other electronic products not specifically
classifiable will come under entry 55 of 1st
schedule taxable at 8 %.
Plain paper, pre-printed paper and sleeted
paper appear to be various forms of paper, which are
to be classified under entry 106 (1) of 1st
schedule taxable at 8 %.
The rates mentioned will be applicable till
31.03.05. The points raised are clarified accordingly.
Sd/
Commissioner
13.
PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub: - KGST Act 1963- Clarification under section
59A- construction of boat jetty Whether comes under
Sec.7 (7) of the Act- clarified- orders issued- Reg:
Read: - 1. Application dt. 26.08.04 put in by Sri.V.V.Manojan,
PWD Contractor.
2. Posting notice No.C3.50573/04/CT Dt. 18.04.05.
ORDER No. C3. 50573/04/CT Dt. 28.07.05
Sri.V.V.Manojan, PWD Contractor, Nileswaram, Kasargod
has preferred an application for clarification U/s.
59A and requested to clarify whether construction
of boat jetty would come under the purview of civil
works as described in Sec. 7(7) of the KGST Act 1963.
Applicant was heard. He has contended that building
boat jetty is civil contract and they are entitled
to pay compounded tax @ 2%.
As per section 7(7) of the KGST Act 1963, construction
of buildings, bridges, roads, railway tracks, walls
including sea walls, dams and canals including any
repair or maintenance of such civil works alone are
coming under the purview of civil works.
As per section 7(7) the above civil works contractors
alone can opt payment of tax at 2 % on the whole amount
of contracts. All other contractors not covered by
section 7(7) can opt for payment of tax at 70 % of
the rate shown in the IV schedule as per section 7(7A)
or if such contract amount does not exceed 50 lakhs
rupees, can opt @ 5 % of such contract amount.
The construction of boat jetty is not civil contract
and is outside the purview of section 7(7) which is
applicable to the construction of buildings, bridges,
road, dam, canal, walls including seawall and railway
tack. The construction of boat jetty will fall under
section 7(7A) and the petitioner is liable to tax
at 5 % if the amount of contract does not exceed Rs.
50 lakhs or at the rate of 70 % of the rates shown
in the schedule against such contract as envisaged
under section 7(7A) of the Act.
The point raised is clarified accordingly. The clarification
is applicable only upto 31st March 2005.
Sd/
Commissioner
14.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:- KGST Act 1963- Clarification under section
59A- Rate of tax for irrigation equipments and accessories-
clarified- orders issued- Reg:
Read:
1. Application dt. 28.05.04 of M/s. Cardamom Grower’s
Association.
2. Posting Notice No.C3.28789/04/CT Dt. 02.09.04
ORDER
No. C3. 28789/04/CT Dt. 10.08.05
M/s.
Cardamom Growers Association has preferred an application
under section 59A of the KGST Act 1963 and requested
to clarify the following points.
1.
Rate of tax for irrigation equipments and its accessories
(Micro/Sprinkler irrigation etc)
2.
When farmers bring the irrigation equipments and other
agricultural inputs for their own use, whether any
entry tax is applicable.
3.
What are the documents to be produced at check post
when farmers bring irrigation items pump sets, pipes
and such other agriculture inputs for their own use.
4.
Rate of tax for cardamom agro dryers and other dryers
used for drying other agricultural products.
5.
Tax rate for water crystals used for moisture retention
with the ability to release moisture to the plant
upon demand.
6.
Rate of tax for hand operated fodder cutter used for
cutting fodder for cattle and for making compost.
The
authorised representative was heard.
Regarding
the first point sought for clarification, one of the
major ingredients used for the manufacture of micro
irrigation equipments and its accessories are plastics.
Articles made of plastics is taxable at 12 % vide
entry 113 of 1st schedule and water supply and sanitary
equipments and fittings are also taxable at 12 % under
entry 170 of 1st schedule to the KGST Act.
Since irrigation equipment and accessories are solely
used for irrigation purposes it can rightly be classified
under water supply equipment vide entry 170 of 1st
schedule to the KGST Act. This issue is clarified
accordingly.
As
regards, micro sprinkler irrigation equipments it
is made of brass, aluminium etc. So it is a metallic
product. All metallic products are taxable at 8 %
under entry 90 of 1st schedule to KGST
Act.
By
virtue of SRO 313/05, the rate of tax on the turnover
of sale of sprinklers which include irrigation equipments
for micro irrigation, drip irrigation and mist irrigation
and its accessories used by planters for irrigation
purpose is reduced to 4 % w.e.f 01.04.04.
Regarding
the second issue raised for clarification, section
3 of the Entry Tax envisages that those goods, which
are enlisted in the schedule to the Act, are exigible
to entry tax on its entry into any local area for
use, consumption or sale. Since the point sought
for clarification does not come under the purview
of section 59A of KGST Act 1963, the same cannot be
clarified under section 59A.
The
documents to be produced at check post when farmers
bring irrigation items, pumpsets, pipes and such other
agricultural inputs for their own use are purchase
invoice, certificate of ownership in Form No. 27A,
proof of ownership of land and details of remittance
of Agricultural Income Tax paid, if any. The third
point is clarified accordingly.
The
fourth point sought for clarification is regarding
the rate of tax for cardamom agro dryers and other
dryers used for drying other agricultural products.
Heading 8419 3000 of the Central Excise Tariff Act
defines dryers as machinery. So it is taxable at 12
% vide entry 84 of 1st schedule.
As
regards the fifth point to be clarified, water crystals
containing chemicals and chemical components and mixtures
are taxable at 12 % vide entry 33 of 1st
schedule.
With
respect to rate of tax for hand operated fodder cutter,
fodder cutter is an agricultural implement. As per
SRO. 1094/99 grass knives are exempted. Fodder cutter
can be classified under grass knives. The point raised
is clarified accordingly.
Sd/
Commissioner
15.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:-
KGST Act 1963- Clarification U/s 59A- application
from M.Narayanan kutty-100% EOU _exemption from purchase
tax -clarified- orders issued- Reg:
Read:-
Application Dt. 18.11.04 of Sri.M.Narayanan Kutty,Malhotra
Rubbers Ltd.
ORDER No.C3.66389/04/CT Dt.16.08.05
Sri.M.Narayanan Kutty, Malhotra Rubbers Ltd,
Kevee Buildings, Hosdurg, Kanhangad has preferred
an application for clarification under section 59A
of the KGST Act 1963 and requested to clarify as to
the eligibility for purchase tax exemption in respect
of 100% Export Oriented Units located outside Kerala.
Sri.M.Narayanan Kutty, Purchase Assistant
of the applicant company was heard. Applicant is a
100 % Export Oriented Units that exports rubber products.
The unit is at noida in Utterpradesh and they are
making interstate purchase of raw rubber from Kerala.
The applicant desires to know.
a)
Whether they are entitled to exemption from purchase
tax as a 100 % EOU and
b)
Whether they have to take registration under the KGST
Act and if so which are the documents to be produced.
Export
Oriented Units outside the state are not eligible
for any tax exemption. The first point is clarified
accordingly.
Regarding the second point sought for clarification
it is clarified that registration under KGST Act would
have been necessary up to 31.03.05 for making purchases
from Kerala, if the turnover exceeded the prescribed
limit.
Sd/
Commissioner
16.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
THIRUVANANTHAPURAM
Present:
Sri.V.Somasundaran.IAS
Sub:- KGST Act 1963- Clarification under section.
59A- Whether electronic car security systems and connected
equipments and accessories come under entry 55 of
1st schedule to KGST Act- clarified- orders
issued- reg:
Ref:- Application in Form 31D dt. 20.05.04 of M/s.
Auto Cop(India) Private Ltd, Kochi
ORDER
No.C3.27910/04/CT Dt.19.08.05
M/s. Auto Cop (India) Private Ltd, P.J.Antony
Road, Palarivattom, Kochi has preferred an application
under section 59A of the KGST Act 1963 and requested
to clarify whether the commodity electronic car security
systems and connected equipments and accessories are
coming under entry 55 of 1st schedule to
KGST Act, 1963.
Sri.Johney, Chartered Accountant was heard.
He has stated that the assessing authority has proposed
to levy 12 % tax on the commodity treating the same
under entry 83 of 1st schedule to KGST
Act 1963. But according to the applicant the commodity
come under entry 55 of the 1st schedule
to KGST Act 1963.
The contentions of the applicant has been
analysed with respect to the relevant statutory provisions.
As per entry 55 of 1st schedule to KGST
Act 1963, “electronic systems, instruments, apparatus
and appliances other than those specified elsewhere
in this schedule and spare parts and accessories there
of” are taxable @ 8 %.
Electronic car security system is nothing
but an electronic device. All electronic systems,
instruments, apparatus and appliances including its
spare parts and accessories are taxable @ 8 % vide
entry 55 of schedule I to KGST Act 1963. So electronic
car security system, being electronic system, will
rightly come under entry 55 of 1st schedule
to the KGST Act 1963 taxable @ 8 %, upto 31..03..05.
The point raised is clarified accordingly.
Sd/
Commissioner
17.PROCEEDINGS
OF THE COMMISSIONER OF COMMERCIAL TAXES
