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2015 (1) TMI 413 - HC - VAT and Sales TaxInterpretation of term “and their compounds” - Additive flavour compounds only and synthetic essential oils, fragrances, etc. – Held that:- Assessee rightly submitted that a composite expression must be construed as a whole and in the words of Bennion, it is incorrect to assume that the whole is necessarily the sum of its parts, because a certain meaning can be collected by taking each word in turn and then combining their several meanings - aromatic chemicals and their compounds are not intended to be treated separately from natural and synthetic essential oils - the use of the conjunction “and” with the word “and their compounds” is intended to apply to the compounds of natural synthetic oil and also compounds of aromatic chemicals and natural and synthetic oils - wherever it was intended that the product or derivative chemicals were to be grouped to create a distinct category, specific language has been used. Although in the case of Raw materials it is seen that the expression “and their compounds is applicable only to the natural and synthetic essential oils but not applicable to fragrance and flavour chemicals or industrial flavours and fragrance in concentrated form - a perusal of the definition of Aromatic Chemicals, Essential Oil and Essential Oil, Synthetic reveals that they can be combined with each other - Essential Oil Synthetic is shown as a composition of natural essential oils and aromatic chemicals etc. - The Tribunal was justified in negating the revenue's interpretation of the word “and their compounds” in schedule entry C-I-19 covers only the compounds of natural and synthetic oil and essential oils, to the exclusion of aromatic chemicals – thus, the perfumery compounds are compounds of aromatic chemicals within the meaning of entry C-I-19 and in view thereof, the perfume is covered under C-II-86 – Decided against petitioner revenue.
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