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2010 (7) TMI 891 - HC - VAT and Sales TaxWhether, on facts and circumstances of the case and on a true and correct interpretation of Schedule A, entry 36 appended to the Bombay Sales Tax Act, 1959, the Tribunal was legally justified in holding that the "bouquet of fresh flowers" is not covered by the said Schedule A, entry 36 pertaining to "natural flowers" but it is covered by the residuary Schedule C, Part II, entry 152 and hence liable to tax at 13 per cent? Whether, on facts and circumstances of the case and on a true and correct interpretation of section 2(17) of the Bombay Sales Tax Act, 1959, the Tribunal was legally justified in holding that the activity of preparing bouquets from the natural flowers brings into existence commercially a different product and hence is a "manufacture"? Held that:- If the "flower bouquet" as submitted by the learned advocate for the respondent is an arrangement of cut flowers, such arrangement of cut flowers by itself would not convert the said flowers into a different commercial commodity nor will it amount to an activity which would have an impact on the nature of the goods and will therefore not fall within the definition of the word "manufacture". Since bouquet of fresh flowers prepared using golden grass, earthen pot or basket, silver foil, chamki, ribbons and other decorative material, not being a subject-matter of dispute involved herein, we do not propose to go into the question whether such change or transformation in substance qua the fresh flowers would fall within the definition of the term "manufacture". Each product will have to be examined on its own facts and determined for the purpose of its taxability. In the instant case the invoice submitted by the applicant and on the basis of which, the decision has been given by the Tribunal shows description of the goods as "fresh flowers bouquet". We, considering the simple arrangement of fresh flowers, answer both the questions set out in paragraph 2 of this judgment in the negative, i.e., in favour of the applicant and against the Revenue.
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