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2011 (10) TMI 564 - HC - VAT and Sales TaxRate of tax - potato chips - entry No. 6 of Schedule II(B) of the Act - 4% or 12.5%? - whether potato chips is a processed vegetable or not, and consequently liable to be taxed at four per cent or at 12.5 per cent? - Held that: - A perusal of entry No. 6 of Schedule II(B) of the Act indicates that all processed and preserved vegetables would be taxed at 4%. Potato is a vegetable after going through the process of slicing, frying and spicing, potato chips does not cease to be a vegetable. It is irrelevant as to whether it becomes a snack item or not. A processed vegetable can also be a snack item, but then it does not take the snack item outside the entry of processed vegetables. The characteristics of the potato remains the same and if, by processing potato, it becomes a potato chip, it still remains a processed vegetable and, consequently, will be taxed at 4% under Schedule II(B) of the Act. It is well-settled what is not excluded would be held to be included - from a reading of entry No. 6 of Schedule II(B) of the Act to be an inclusive entry. The use of word "all" and "including" makes it apparently clear that it is an inclusive entry. The effect of the words "all" and the words "including fruit jams, jellies, fruit squash, paste, fruit drinks and fruit juices and achar (whether in sealed containers or otherwise)" under entry No. 6 of Schedule II(B) of the Act and the absence of any exclusion of potato chips within the said entry gives a clear legislative intent of inclusion of potato chips under entry No. 6 of Schedule II(B). Revision allowed - decided in favor of revisionist-assessee.
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