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2011 (3) TMI 477 - HC - VAT and Sales TaxApplicability of VAT rate at 13% or 4% - Classification of goods - The petitioner has introduced itself to be a dealer registered under the Act and engaged inter alia in making and selling of "Ujala Supreme" which, according to it, is a brand name for diluted Acid Violate Paste ( for short, also hereafter referred to "AVP") - According to the petitioner, its product "Ujala Supreme" is the diluted form of Acid Violate Paste and is classifiable under HSN Code 3204 12 94 of the Central Excise Tariff Act,1985 ( for short, hereafter referred to as the "Tariff Act") as well as the Customs Tariff Act,1975 - The respondents have maintained that the product marketed by the petitioner is accepted in common parlance as "fabric whitener" distinctly different from Acid Violate Paste which is acknowledged as synthetic organic dye and is used for dyeing fabrics of silk wool at elevated temperature in presence of acid only - On a scrutiny of the test reports produced before it, their Lordships concluded that in Ujala Supreme, Acid Violet was present in less than one percent and that the balance 99 percent was water - There being no estoppel against law, the plea of the respondents against the maintainability of the instant proceeding for want of bonafide of the petitioner does not commend for acceptance The argument on behalf of the respondents that Ujala Supreme even if a dye, being offered for sale in form or packing for retail sale, is covered by heading 3212 is not based on pleadings - As Ujala Supreme is a highly diluted form of AVP in its essential character, on the application of Rule 3(b) it appropriately is entitled to be catalogued in Entry 114 of Schedule II-C of the Act and qualified for HSN 3204 12 94 for determining the rate of taxability - Held that: petitioner‟s product "Ujala Supreme" is entitled to be included in Entry 114 of Schedule II-C of the Act with corresponding rate of duty prescribed by HSN Code No. 3204 12 94 - Decided in favor of the assessee
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