TROPICAL FLAVOURS (PRIVATE) LTD. REP. BY ITS GENERAL MANAGER, SHRI MAHESH S/O SHRI CHANNANGAIAH Vs. STATE OF KARNATAKA REP. BY ADDITIONAL CHIEF SECRETARY AND PRINCIPAL SECRETARY TO GOVERNMENT, FINANCE DEPARTMENT, COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THE assessee is questioning the correctness and legality of the order passed by the Authority for clarifications and Advance Ruling in order No. AR. CLR. 436/2003 -06 dated 18.4.2006 under Section 16 of the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as 'the Tax' for brevity).

(2.) THE facts leading to the filing of this appeal are that the appellant is having an industrial unit at Kodigehalii village, Doddaballapur Taluk engaged in extraction of chilly oleoresin from dry chillies. It was contended by the appellant before the Advance Ruling Authority that, by virtue of the process carried out for the extraction of oleoresin, parts of the dry chilly that remains thereafter is termed or called in common parlance as dry chillies, skinned/cut chilly and crushed chilly or spent chilly.

(3.) IT is was submitted that III schedule was substituted by new Schedule with effect from 1.4.2006 and the spices are specified at Sl. No. 89 which, is the enlarged version of Sl. No. 61 as extracted above and the said entry at Sl. No. 89 reads as under: 89. Spices in all forms including jeera (cumin seeds), methi poppy seeds (kaskas), coriander (dhaniya), Shajeera, somph, katha, azwan, kabab chini, bhojur phool, tejpatha, japtri, nutmeg (marathamoggu), kalhoovu, aniseed, turmeric, cardamom, pepper, cinnamon, dal chinny, cloves, tamarind and dry chillies including cut chissies, spent chillies and chilly seed, but excluding spices in the form of masala powder, instant mixes or other mixtures containing more than one spice or a spies with any other material, wet dates, hing (asafoetida).