HILLTOP GRANITES PVT. LTD., 14/1, BANNERGHATTA ROAD, NEAR MICO BACK GATE, BANGALORE-560030, (BY NITESH GIRIA, DIRECTOR, 35 YEARS) Vs. THE ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES, ZONE-1, VANIJYA THERIGE KARYALAYA, GANDHINAGAR, BANGALORE - 56

JUDGEMENT

(1.) The appellant - assessee is a granite dealer. The Assessee purchased raw granites, processed them and sold dressed and finished products. The transaction pertains to assessment year 1996-97. The assessee in the return showed the processing activity as a manufacture and sought tax concession U/s. 5A of KST Act. The assessing authority found that processing of raw granite does not amounts to manufacturing activity and held that benefit of concessional tax U/s. 5A is not entitled to. The Assessing Authority initiated the proceedings for levy of penalty and accordingly levied the penalty U/s. 5A3(iii) of KST Act. The provisions of Section 5A(3) which is relevant for consideration are extracted for convenient reference.

(2.) After hearing the parties, the following question of law are framed:-