STOVEKRAFT PVT LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE appellant has challenged in this appeal the order dated September 30, 2005 passed by the authority for Clarification and Advance Rulings (hereinafter referred to as "the authority") under section 60 of the Karnataka Value Added Tax Act, 2003, holding the rate of tax leviable to stainless steel LPG stove is at 12. 5 per cent, kerosene wick stove at 12. 5 per cent and stainless steel vacuum flask at 12. 5 per cent.

(2.) THE appellant is a dealer registered under the provisions of the Karnataka Value Added Tax act, 2003 (for short, hereinafter referred to "the KVAT Act" ). It is engaged in the manufacture and sale of utensils like pressure cookers, stoves, tavas, flasks, etc. Under the Act the goods are subjected to tax under five different rates of tax under four separate Schedules and under Section 4 (1) (b) of the KVAT, 2003. While the First Schedule deals with goods exempted from the tax, the Second Schedule deals with the goods which are taxable at one per cent and the Third schedule deals with goods which are taxable at four per cent and finally the Fourth Schedule deals with goods which are taxable at 20 per cent. All the unscheduled goods are taxed at the revenue Neutral rate of 12. 5 per cent under Section 4 (1) (b) of the KVAT Act.

(3.) IN fact, in the Third Schedule prior to its substitution entry No. 4 dealt with aluminium utensils and enamelled utensils. However, in the substituted Third Schedule which came into effect from june 7, 2005 entry No. 5 is substituted in place of earlier entry No. 4, which refers to "all utensils including pressure cookers and pans other than utensils made up of precious metals". Thus, the description of the goods at entry No. 5 is far wider when compared to the earlier entry before substitution.