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2014 (2) TMI 1144 - TRIPURA HIGH COURTRate of tax - Classification of goods - Classification of mosquito and insecticide repellents - Levy of tax @12.5% or 4% - Held that:- when the whole of entry No. 29 of Schedule II(a) of the TVATAct is read together, it clearly indicates that the insecticides which have been referred to therein are those used for agricultural purposes. Whereas entry No. 115 of Schedule II(b) specifically deals with mosquito repellents including electric or electronic mosquito repellents and these have been levied taxes at a higher rate. No doubt, the mosquito repellents are also insecticides in a diluted form, but "mosquito repellents" is a well-known terminology in common parlance and mosquito repellents are not the insecticides which are envisaged under entry No. 29 of Schedule II(a) of the TVATAct. Therefore, on merits we do not find any illegality in the order. No penalty should have been imposed on the present petitioner. The assessee had approached the assessing officer and asked for a clarification. It was the duty of the assessing officer to clarify the matter, but he did not do so and kept sleeping over the matter for two long years. Therefore, the assessee, according to him, has not collected tax at 12 per cent., but has collected tax at four per cent. We have held that the assessee is liable to pay tax at 12.5 per cent. But there is no wilful evasion of tax in this case because he had honestly put forth his case before the taxing authority and if the taxing authority felt that there was no merit in the submission of the assessee, it should have replied to him then and there. This has not been done. - Decided partly in favour of assessee.
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