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2015 (1) TMI 639 - MADRAS HIGH COURTTaxability of Women's Horlicks - Classification of product - Clarification regrading rate of tax - Whether Women's Horlicks can be taxed under residuary entry as against the specific entry arrived tax at 4% on Part B of the First Schedule. - Petitioner contends that Women's Horlicks is not made up of milk alone but with other ingredients, therefore, it is taxable under the residuary entry - Held that:- Under the Exemption Notification dated 17th March, 1986 the goods would attract tax at 4 percent if it falls under item (viii) or 10 pecent if it falls under item (x). The High Court has taken into consideration the manner in which 'Horlicks' was treated as falling within milk food occurring in the earlier Entry 24 and has come to find against the Revenue. - respondent is required to apply the proper tests, ascertain the essential character of the product bearing in mind the certificate filed by the petitioners under the provisions of the Milk and Milk Products 92, take note of the principles laid down by the Hon'ble Supreme Court [2007 (3) TMI 260 - SUPREME COURT OF INDIA] in the decisions referred, with regard to the manner in which the clarification of the products is to be done and the decision of Hon'ble Division Bench of this Court in H.M.M Limited (1990 (10) TMI 331 - MADRAS HIGH COURT) confirmed by the Hon'ble Supreme Court and then take decision on merits and in accordance with law after affording an opportunity of personal hearing. Further the petitioner has placed reliance on the decisions of Authority for Clarification and Advance Ruling, where they have clarified regarding the rate of tax for milk based products and held that product is a milk product since it is pre-dominently milk In the light of the above, the Writ Petitions are allowed and the impugned clarification is quashed and the 2nd respondent is directed to place the matter before the Authority for Clarification and Advance Ruling - decided in favour of petitioners.
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