ASSOCIATED CEMENT CO LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) PETITIONER is a manufacturer of Cement, as also a grouting material known by the Brand name 'shrinkkomp'. It is a registered dealer under the Karnataka Sales Tax Act, 1957 ('act' for short ). In regard to the assessment periods 1. 4. 1989 to 31. 3. 1990 and 1. 4. 1990 to 31. 3. 1991, the assessing Authority passed orders of assessment dated 25. 2. 1994 and 29. 4. 1994 respectively.

(2.) THE petitioner had several grievances in regard to the orders of assessment, two of which are relevant in these revision petitions: (i) taxing of 'shrinkkomp' as 'cement' at 13% as falling under entry 7 of Part 'c' of Second Schedule to the Act; and (ii) subjecting the turnover relating to charges for packing material specified and charged by the assessee separately (without including it in the price of goods) to turnover tax under. Section 6b of the Act. The petitioner therefore filed appeal Nos. KST AP. NOS. 74/94-95 and 91/94-95 before the First Appellate Authority in regard to its grievances. The Appellate Authority confirmed the findings of the Assessing authority in regard to those two aspects, but granted some relief in regard to some other grievances by a common order dated 14. 7. 1995. The second appeals filed by the assessee before the Karnataka Appellate Tribunal, Bangalore in STA Nos. 809 and 810/1995 have been dismissed by the Tribunal by order dated 29. 2. 1996. Feeling aggrieved, petitioner has filed these petitions under Section 23 (1) of the Act.

(3.) TWO substantial questions of law that arise for consideration in these petitions are: (i) Whether 'shrinkkomp', a grouting material, manufactured and sold by the assessee is a 'cement' subject to a single point tax falling under Entry 7 of Part 'c' of Second Schedule to the act as contended by the Department or a general goods not falling under any schedule, subject to multipoint tax under Section 5 (1) of the Act as contended of the Assessee? (ii) Whether the cost of packing material, specified and charged by the assessee separately in its sales invoices is includible in the total turnover to be subjected to tax under Section 6b of the act? re: Point No. (i):