IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN WEDNESDAY, THE 11TH MARCH 2009 / 20TH PHALGUNA 1930 OT.Appeal.No. 14 of 2008() -------------------------- AGAINST THE ORDER DATED 21/10/2008 IN CT/DTD IN ORDER.C-3-30647/2007 of COMMR. OF COMMERCIAL TAXES, TRIVANDRUM .................... APPELLANT: -------------------- FETHER TOUCH OXIDES PVT.LTD. MISMI BUILDING, AMMANKOVIL CROSS ROAD ERNAKULAM,KOCHI-35. BY ADV. SRI.V.V.ASOKAN SMT.S.AMINA RESPONDENT(S): --------------- 1. COMMISSIONER OF COMMERCIAL TAXES VAT OFFICE, THIRUVANANTHAPURAM. 2. ASSISTANT COMMISSIONER, SPECIAL CIRCLE-11, COMMERCIAL TAXES, ERNAKULAM. 3. ASSISTANT COMMISSIONER( AUDIT SSESSMENT) -II, OFFICE OF THE DEPUTY COMMISSIONER(AA) COMMERCIAL TAXES, ERNAKULAM. 4. INSPECTING ASSISTANT COMMISSIONER (RECOVERY) COMMERCIAL TAXES, ERNAKULAM. BY G.P. SRI. V.K. SHAMSUDEEN THIS OTHER TAX APPEAL HAVING COME UP FOR ADMISSION ON 11/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & K. SURENDRA MOHAN, JJ. -------------------------------------------- O. T. A. No. 14 OF 2008 -------------------------------------------- Dated this the 11th day of March, 2009 JUDGMENT Ramachandran Nair,J. Appeal is filed against clarification issued by the Commissioner of Commercial Taxes under Section 94 of the KVAT Act. The products involved are yellow oxide, red oxide and black oxide which are colouring materials used for mixing with cement for giving colour to floor and are said to be used for colouring goods. The specific case of the appellant is that the item falls under Entry 82 of List A to Third Schedule to the Act which covers industrial inputs and packing materials. Items covered by Entry 82 of List A to Third Schedule are iron oxides and iron hydroxides. The Commissioner after going through the Customs Tariff Act found that HSN code applicable is 3206 49 10 which covers red oxide. The contention of the appellant is that all the items sold by the appellant are essentially iron oxide and therefore all the items will fall under entry 82 of List A to Third 2 Schedule to the Act. However, we find that Chapter 32 of the Customs Tariff Act deals with all kinds of dyes, pigments and other colouring matter, paints, varnishes, etc. The items sold by the appellant admittedly are colouring materials which when are specifically covered by Chapter 32 cannot be brought under HSN code No. 2821 10 10 which covers only iron oxides. Even though red oxide is essentially made of iron oxide, classification has to be under entry 3206 49 10 and not under entry providing for iron oxide. We do not find any ground to interfere with the clarification issued by the Commissioner which is in consonance with HSN code provided in the Customs Tariff Act which in turn is adopted in the KVAT Act. Appeal is accordingly dismissed. (C.N.RAMACHANDRAN NAIR) Judge. (K. SURENDRA MOHAN) Judge. kk 3