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2021 (3) TMI 596 - KERALA HIGH COURTClassification of goods - Chandrika Soap - whether assessee is entitled to be treated as Handmade soap and consequently obligated to pay tax at concessional rate of 4% or Chandrika Soap falls under the category i.e. soaps other than hand made? - interest on the differential tax - tax paid based on the return. HELD THAT:- It must be predominantly made by hand. It does not matter if some machinery is also used in the process. (2) It must be graced with visual appeal in the nature of ornamentation or inlay work or some similar work lending it an element of artistic improvement. Such ornamentation must be of a substantial nature and not a mere pretence. These principles would apply to all pending matters and to all matters arising thereunder - The report deals in sufficient detail on the purpose and utility of drum in the sequence of manufacturing process and used for mixing the raw material. This stand alone item ought not to be understood as Chandrika Soap made otherwise than Handmade. The Chandrika Soap is treated as 'hand made' by the assessing authorities in the State of Karnataka. The dominant tests on what constitutes 'handmade' are satisfied in the case on hand and the findings of the Tribunal are set aside and accordingly the first question is answered in favour of the assessee and against the Department. Whether the direction of the Tribunal for calculating interest on the differential tax and tax paid based on the return is legal? - HELD THAT:- The re-assessment does not arise and question is answered in favour of assessee and against the Revenue. Revision dismissed.
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