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2008 (3) TMI 636 - HC - VAT and Sales TaxMosquito repellent - whether be taxed at 12.5 per cent? - learned single judge declining to interfere with the combined reassessment and penalty orders Held that:- Mosquito repellent is an "insecticide". Further, it is not in dispute that the mosquito repellents were manufactured by the said company, viz., Godrej Sara Lee Ltd., of which the assessee has been an agent, under the licence obtained under the provisions of the Insecticides Act, 1968 and "insecticide" is listed under List 23 of the Third Schedule to the KVAT Act. Therefore, we are of the considered view that the mosquito repellent squarely falls within the ambit of entry 23 of the Third Schedule annexed to the KVAT Act and as such, the learned assessing authority committed serious error in law in holding that the turnover in respect of the sales of mosquito repellents has to be taxed at 12.5 per cent on the ground that the mosquito repellents fall within the residuary entry of clause (b) of sub-section (1) of section 4 of the KVAT Act. Therefore, the orders impugned in the said writ petition at annexures A and A1 to A6 deserve to be quashed so far they relate to levy of tax and penalty on the sales of mosquito repellents at 12.5 per cent. In the result, the present writ appeal is allowed. The impugned order of the learned single judge dated April 2, 2007 passed in W.P. No. 5507 of 2007 is hereby set aside.
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