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2017 (4) TMI 1241 - HC - VAT and Sales TaxClassification of goods - colour boxes, insulating tape and certain specified series of products of Dr. Fixit Series used in building activity for water proofing, binding agent & bonding material - The assessee furnished its return declaring the product being sold classifiable @ 4% of Schedule-IV of the Rajasthan Value Added Tax Act, 2003, however, the Assessing Officer was of the view that the products are not classifiable @ 4% rather they fall in residuary Schedule-V where the rate of 12.5% is applicable - Held that: - it would be appropriate to examine entry 69 as referred to and relied upon by the assessee of Schedule-IV. The entry “industrial inputs” in my view explicitly makes it clear that only “industrial inputs” are to be incorporated in Part 'B'. Having noticed the salient features of the products being manufactured by the assessee of various Dr. Fixit Series, in my view, the products make it abundantly clear that these are meant for water proofing or as bonding agent as evident from the very features shown by the assessee and considered by the lower authorities. These products have direct bearing on the water proofing and cement binding activities relating to building/civil works and cannot be treated to be “industrial inputs” under Part ‘B’ of Schedule-IV of the Act. Once the products do not fall in specific entry 69 as claimed by the assessee or as “industrial inputs”, it has to fall in Schedule-V. Merely because some chemical is applied, it even otherwise does not prove that it falls in the ambit of “industrial inputs”. The above Dr. Fixit Series of products as they stand, have in my view been rightly held to be either water proofing materials or binding substances in category of building material used in construction works, like sealant, paints etc. and such products are generally and directly used by the consumers in construction works and could not be covered in the ambit of “industrial inputs” as contended by the learned counsel for assessee. Having analysed entry no.268 of Part ‘B’ of the Schedule (supra), the items as are consumed or used in the production or manufacture of new and different commercial viable product, however, the products of the petitioner are already finished goods usable in any given perspective according to the needs of the user. The salient features, does clearly prove that the products do not answer the description of basic entry of chemical. They have on the contrary a description of the utility of products as water proofing/bonding materials used as sealants, plasticizing agents, concrete curing compounds and related works, which makes them in common parlance marketable end products with distinct nomenclature of sealants and plasticizing bonding materials. The assessee is unable to satisfy this court that the products as they stand, fall in entry 69 and 268(Part-B) of Schedule-IV and thus, claim of the assessee being not justified, the finding reached by all the three authorities in unison, is upheld - appeal dismissed - decided against assessee.
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