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2012 (10) TMI 450 - HC - VAT and Sales TaxUjala Supreme - taxable @ 4% OR 12.5% - whether the product is substantially the same as its original material AVP or has it undergone a manufacturing process to transform itself into a commercially distinct identifiable end product - Held that:- The product “Ujala Supreme” though is a highly diluted form of Acid Violate Paste (AVP), as has been rightly held by the learned Single Judge, it retains the essential characteristics of AVP. Therefore, it cannot be said to be commercially distinct and different from the user product AVP, which is covered by Entry 114 of schedule II-C to the Act. Thus referring to Hon’ble Supreme Court in the well known case of UNION OF INDIA Versus DELHI CLOTH AND GENERAL MILLS CO. LTD.(1962 (10) TMI 1 - SUPREME COURT OF INDIA) that manufacture signifies bringing into existence a new substance and not merely to effect a change in one. Therefore, no justifiable reason to accept the submission of the appellant State that the product emerges out of a manufacturing process and to place the product in the residuary category in the fifth schedule to the Act. Therefore no different from the one taken by the learned Single Judge can be taken - in favour of assessee.
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