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2009 (12) TMI 883 - HC - VAT and Sales TaxLevy of tax separately - Held that:- Bureau of Indian Standards (BIS) prescribes criteria for adding chemical for colour quoting is mainly for purpose of standardizing so as to avoid any accusation of adulteration. In such cases, the dealers may avoid facing litigation in supplying adulterated kerosene. Similarly, relying upon the notification under the Essential Commodities Act has no place, so long as the commodity is an essential commodity and private marketing system is introduced by the Parliament through a delegated legislation to safeguard the interest of kerosene supply under the public distribution system. Therefore, it cannot be said that the State Legislature lacks power in taxing kerosene different from that of SKO or white kerosene oil. The attack of discrimination thus must fall to ground in the light of the above legal precedents as set out above. The second contention that exemption notification under section 17(1) will continue to be in operation notwithstanding the amendment to the entry in the Schedule because the same term continues to be in use in the amendment notification cannot also be accepted. Though such an argument is attractive, it does not stand to legal scrutiny in the light of the judgment of the Supreme Court in Sales Tax Officer, Sector IX, Kanpur v. Darling Dairy Products [1994 (5) TMI 213 - SUPREME COURT OF INDIA] What applies to surcharge is also applicable to resale tax. Further, once legal issues are settled regarding the separate tax for SKO/white kerosene under a different entry in the Eleventh Schedule, the dealers are bound to pay the said rate of levy of tax and also surcharge and resale tax, which are also applicable notwithstanding the so-called exemption under section 17(1). Appeal dismissed.
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