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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 31^ST DAY OF MARCH 2021

BEFORE

THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV

WRIT PETITION NO.52445/2019 (T3RES)

BETWEEN:

M/s.Anil Engineering Works

Harige, Ganapathi Temple Road,

Vidya Nagara (Post)

Shimoga 3 577203

Karnataka

Represented by its Partner.

... Petitioner

(By Smt.Veena.J.Kamath, Advocate for

Sri.Govindraya Kamath.K, Advocate)

AND:

1.

Authority for clarification and Advance Rulings

Represented by Commissioner of Commercial Tax

Vanijya Therigegala Karyalaya,

Kalidasa Road, Gandhinagara,

Bengaluru-560009.

2.

The Commissioner of Commercial Taxes in Karnataka

Vanijya Terige Karyalaya-1,

Gandhinagar,

Bangalore-560009.

3.

State of Karnataka

Represented by

Under Secretary to Government,

2

Finance Department,

Vidhana Soudha,

Bengaluru-560001.

4.

Assistant Commissioner of Commercial Tax(Audit)-1

1^st Floor, Suvarna Karnataka Vanijya Therige Bhavan

B Block, 12^th Cross, Gopalgowda Layout

Shimogga-577205.

5.

Joint Commissioner of Commercial Taxes(Appeal)

Malnad Division

Commercial Tax Department

Gopala Gowda Extension

Shimoga-577204.

&Respondents

(By Sri. K. Hema Kumar, AGA)

This Writ Petition is filed under Articles 226 and 227

of the Constitution of India praying to quash the

clarification dated 03.09.2019 issued by the R-1 as per

Annx-A and declare that the rate of tax for paper insulated

wire/winding aluminum wire is as per the notification dated

31.03.2006 issued by the R-2 as per Annx-C.

This Writ Petition coming on for Preliminary Hearing

8B9 group, this day, the Court made the following:

ORDER

The petitioner has filed the present petition

seeking for setting aside of the clarification dated

03.09.2019 at Annexure-A and sought for declaration

that the rate of tax for paper insulated wire/winding

aluminium wire is as per the notification dated

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31.03.2006 and alternative prayer is also sought for

setting aside the clarification dated 03.09.2019 and

clarification dated 21.06.2008.

2.

The petitioner submits that petitioner had

sought for the clarification as per the application at

Annexure-D before the authority for clarification of

Advance Rulings in terms of Section 60 of the KVAT

Act, 2003. The specific clarification was as regards to

the applicable rate of tax with respect to the paper

insulated aluminium wire/paper insulated aluminum

winding wire.

3.

The petitioner submits that the tax that

ought to have been made applicable is in terms of

Section 4(1)(a) of the Act which prescribes rates

applicable with respect to the goods in the III

schedule which the petitioner contends is applicable to

the petitioner. It is further submitted that the III

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schedule prescribes various categories of goods and at

item No.1 there is a category which reads as

<Industrial input and packing materials as may be

notified=.

4.

The

petitioner

submits

that

State

Government

has

passed

the

notification

dated

31.03.2006 under Section 4(1)(a) of the Act clarifying

the nature of goods at item No.51 to include <9 3

paper

insulated

aluminium

wire=.

Hence,

it

is

contended that authority ought to have clarified taking

note of the Government notification dated 31.03.2006

that the paper insulated aluminium wire was to be

taxed at the rate as provided under III schedule.

Attention is drawn to the clarification at Annexure-A

wherein the authority concerned has observed as

follows:

6.

The

Commissioner

of

Commercial

Taxes,

Bangalore

vide

Clarification

5

No.CLR.CR-151/2007-08,

dated

21.06.2008,

has

clarified

that

<Aluminium Winding Wires insulated or

covered with any Material= are taxable

at 12.5% under Section 4(1)(b) of the

KVAT Act, 2003.

7.

Thus,

<Paper

insulated

Aluminium

Wire/Paper

insulated

Aluminium

Winding Wire= is taxa