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2014 (10) TMI 449 - HC - VAT and Sales TaxClassification of goods - Applicable rate of tax - Whether Gambier is catechu liable to tax at the rate of 4% or it is an unclassified item liable to tax at the rate of 12.5% - Held that:- Applicant deals in Gambier, which is a non-edible commodity. Catechu is an edible commodity, which is specified in Entry-68 of Part-A of Schedule II to the Act. The assessing authority assessed to tax the sale turnover of Gambier as an unclassified item vide assessment order dated 19.10.2012 for the Assessment Year 2009-10. - If any term or expression has been defined in the enactment then it must be understood in the sense in which it is defined. In the absence of any definition of such term or expression in the enactment, the meaning of the term in common parlance or commercial parlance has to be adopted. If a person goes to a shopkeeper and ask for Gambier, he shall not be given KATTHA. Merely because Gambier may be used to obtain Catechu or after applying certain process of manufacture it may be used as an alternate for Catechu, it cannot be called as Kattha, as understood in common parlance in India. The main use of Gambier and KATTHA are also different. While the general use of Gambier is in dyeing and tanning, the use of KATTHA commonly known to Indian people is its consumption with betel for chewing and also for some medicinal purposes. Gambier and KATTHA are not one and the same commodity and Gambier is an unclassified item under the Act. - Decided against assessee.
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