- (1.) THE appellant is a dealer registered under the provisions of the Karnataka Sales Tax Act, 1957 (hereinafter for the sake of brevity referred to as 'kst Act ). The appellant company is engaged in designing manufacture, sale and installation, of building maintenance units like cradles, trolleys, portable jibs, winches, etc. The range of building maintenance products designed, manufactured and sold by the appellant-company, are mainly used for the, exterior maintenance of big, buildings. One of the products designed and manufactured by the Appellant company is "facade Access System which is designed to maintain and clean, glass walls, granite and aluminum panels.
(2.) THE appellant company has approached the Authority for clarification and Advance Ruling by filing an application in Form 54 as prescribed under Rule 27-E (1) of the Karnataka Sales Tax Rules ('rules' for short), inter alia seeking clarification advance ruling by framing the following questions. " (a) Whether the specific designing and fabrication of Facade Access Equipment is a works contract activity falling under the provisions of section 5b of the KST Act, 1957 and thereby determine under which specific entry, the same falls under the Sixth Schedule to KST act? (b) If the specific activity of the appellant is not a works contract, then to please determine under which other entry the same falls for the purpose of taxation?"
(3.) THE Advance Ruling Authority, After hearing the representative of the appellant company, by its clarification order No. AR. CLR. Cr. 73/02-03 dated 26. 5. 2003, has clarified that though, the Facade Access System is made per order, the goods in question has the character of machineries and therefore, when sold, it is liable to tax as sale of machinery under Entry 1 (iii) (a) of part 'm' of the Second Schedule to KST Act and the basic rate of tax applicable is 12% and the understanding of the appellant company that it is works contract is not correct.;