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2013 (4) TMI 496 - HC - VAT and Sales TaxRate of tax on product 'Himgange Ayurvedic Oil' - U.P Trade Tax Act and Central Sales Tax Act - reopen the assessment under section 21(2) of the U.P Trade Tax Act as the commodity in question should have been taxed as unclassified item and not as Ayurvedic preparation - Held that:- For the assessment year 2006-2007, this has been held that 'Himgange Oil' falls under the category medicine and not cosmetic. The said judgment is binding on the respondents herein. Moreover there is no denial at any stage by the respondents with regard to the contents of the product or its manufacturing process which leads to the conclusion that the product is an Ayurvedic product. It has been found so even by National Laboratory on examination. The basis of the impugned order dated 2.3.2012 granting sanction under section 21(2) is the survey dated 27.8.2009, conducted by SIB, the product was sent for its testing and in the opinion of the surveying officer, the 'Himgange Oil' does not come under the category of medicine. It was found otherwise. The report of the Laboratory has come and the assessing officer on the basis of the test report has treated 'Himgange Oil' as an Ayurvedic preparation. Upshot of the above discussions is that, except for these two assessment years the product has been treated as Ayurvedic preparation and the said finding has been approved by the High Court inter parties as discussed herein above. Thus absolutely no justification either for granting the permission to reopen the assessment for the assessment year 2006-2007 or to issue any show cause notice under section 21(2) for the assessment year 2005-2006. In favour of assessee.
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