Combustion of Rocket-Candy with Fe2O3
I think you may be missing a key point to catalysis; that the catalyst is not net consumed or altered by the reaction. If you were to put the catalyst in the chemical equation as in your second reaction as a reactant, you would technically need to also put it on the right hand side as a product. However, this is not the way a catalyzed reaction is typically indicated. A common way to indicate that a catalyst is used would be as follows:  

$$\ce{48KNO3 + 5C12H22O11 -&gt;[Fe2O3] 55H2O + 36CO2 + 24K2CO3 + 24N2}$$