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2011 (1) TMI 1193 - HC - VAT and Sales TaxExemption - sale of item under brand name “double mazza” in pouch having two parts, one containing “tobacco” and the other “pan masala” - According to the assessing authority, the disputed item consisted of two commodities, “zarda”, a Schedule I item, and “pan masala”, a Schedule IV item, poured in a single pouch marking two parts separately but the customer had no option to buy either the “zarda” or the “pan masala” alone, and therefore, the disputed item should be treated as taxable under Schedule IV - Held that:- definition of “pan masala” or “pan masala with tobacco”, the General Rules for Interpretation given in the First Schedule to the Central Excise Tariff Act, 1985 have to be followed. Therefore, the disputed item manufactured by the dealer containing two separate folders, one for “pan masala” and the other for “tobacco”, but not offered to sale separately, was really a “pan masala containing tobacco” classified in Chapter 24 under the Tariff Heading 2404.49 although it was presented as the unassembled or disassembled article which had the essential character of the complete or finished article. The Tribunal erred in holding that the sale price of “tobacco” included in the total price of the disputed item should merit exemption in terms of the entry 82 of Schedule 1 of the West Bengal Sales Tax Act, 1994.
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