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2013 (5) TMI 29 - HC - VAT and Sales TaxBone meal - whether lies under Entry 17 of the Third Schedule to the KGST Act or under Entry 57 to the first Schedule among fertilizers - exemption from tax disallowed - Held that:- The judgement of Arya Vaidya Pharmacy and Another Versus State of Tamil Nadu [1989 (3) TMI 355 - SUPREME COURT OF INDIA] as relied by assessee have had application to the facts of this case, if Court had accepted that 'bone meal' had qualified to be an organic manure and which case alone its exclusion would be discriminatory. Since it has been held that 'bone meal' did not qualify to be an organic manure for the reason that it is not produced by a natural process, the principle laid down by the Apex Court has no relevance. Going by the words of the statute only those items which are produced or derived naturally are eligible for inclusion in Item 17. Even if the case of the petitioners is accepted that would only mean that certain items which are ineligible to be included are also included in the Third Schedule. In view, even if what is contended is factual, petitioners cannot say that yet another ineligible items should also be included through the intervention of this court. Therefore, this argument raised by the learned counsel for the petitioners also cannot be accepted and the relief sought for cannot be granted on that basis. Bone meal cannot qualify as an organic manure for the purpose of Entry 17 of the Third Schedule to the KGST Act. These writ petitions were entertained by this Court and on the prima facie case made out, this Court also granted stay. Therefore, it will not be fair to penalise the petitioners by making them liable for interest on the tax amount. Thus direct that if the petitioners pay the tax due under the assessment orders, which are stayed by this Court within four weeks from today, they will be relieved of the liability for the payment of the interest.
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