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2009 (10) TMI 834 - HC - VAT and Sales TaxWhether the Tribunal was justified in holding that the product sold by the respondent under the name "equal" in tablet and powder form attracts tax only at the rate of eight per cent under the residuary entry of the First Schedule to the Kerala General Sales Tax Act, 1963 as against the rate of 12 per cent applied by the assessing officer treating the assessed item as one falling under entry 62 of the First Schedule to the KGST Act? Held that:- The contention of the respondent that "equal" is not used for food preparation is unacceptable as the same is contrary to the company's own claim in their website. The fact that it is used as sweetening agent in the preparation of non-alcoholic drinks and other beverages like tea or coffee does not take it outside entry 62 of the First Schedule and it is further accepted by both sides that the product under the provisions of the KVAT Act is taxable at the rate of 12.5 per cent. Even though counsel for the respondent referred to exemption available to sugar produced in India and the low rate of tax at four per cent for the imported sugar and contended that a sugar substitute should not be subjected to tax at a higher rate, we are of the view that it is a matter of legislative policy and the court cannot apply the rate of tax of sugar to sugar substitute. In view of the finding above, we allow the sales tax revision by reversing the order of the Tribunal and by restoring the assessment of the product under entry 62 confirmed in first appeal.
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