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2008 (1) TMI 853 - KERALA HIGH COURTKattimoru (thick buttermilk) and sambharam - whether the items fall under the residuary items covered by entry 177 of the First Schedule to the KGST Act taxable at eight per cent? Held that:- The basic scheme is to identify the class of customers for the goods and provide rate of tax depending on their capacity. While value-added milk products and soft drinks are consumed by the more affluent class, the class of customers who buy buttermilk are economically weak. Therefore, if higher rate of tax is demanded for buttermilk, the same will defeat the intention of the Legislature in fixing a lower rate to such products. We, therefore, find that the Commissioner clearly went wrong in clarifying that the appellant's products are not covered by entry 49. We declare that the products of the appellant referred above are buttermilk covered by entry 49 and the clarification of the Commissioner to the contrary is illegal and unsustainable. We, therefore, allow the appeal by quashing the impugned order.
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