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2013 (1) TMI 712 - PUNJAB AND HARYANA HIGH COURTInterpretation of chemistry of POP and gypsum - tax imposed at 12.5 per cent over POP - Whether the tax should be levied over POP as per entry 16 of Schedule A or as per entries of Schedule B appendix to the Punjab Value Added Tax Act, 2005? Held that:- Find no merit in the present appeal. The appellant has brought POP within the State of Punjab. Though the chemical properties may be similar, but the fact remains that the uses of gypsum and POP are different. Entry 16 of Schedule A exempts fertilizers from tax. The definition is inclusive which includes gypsum as a fertilizer. Entry 16 exempts fertilizer from tax, whereas POP cannot even remotely be used as a fertilizer. Therefore, POP does not fall within entry 16 of Schedule A. Thus do not find any illegality in the findings recorded by the Excise and Taxation Commissioner in the order dated August 27, 2008 holding that POP is not gypsum. The alternative argument of the appellant that POP is a sulphate falling at Sr. No. 71 of entry 58 of Schedule B attracting tax at four per cent is not acceptable as Entry 58 of Schedule B pertains to industrial inputs and packing material. POP is not an input for industry nor for packing material, therefore, it will not fall within entry 58 of Schedule B attracting rate of tax at four per cent. Once the POP does not fall within entry 16 of Schedule A or any of the items of list appended to entry 58 of Schedule B, the same is taxable as per Schedule F of the Act. Appeal dismissed.
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