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2015 (8) TMI 497 - HC - VAT and Sales TaxWhether industrial margarine was liable to attract only lesser rate of tax, as "edible oil" given under entry 38(19) (d) of KVAT Act, while relying upon decision of supreme court in Aluva Sugar Agency v. State of Kerala [2011 (9) TMI 11 - Supreme Court of India] by which decision of this court in SSD Oil Mills Company Ltd. v. State of Kerala [2010 (6) TMI 732 - KERALA HIGH COURT] was reversed Held that:- Supreme Court observed that, expression used in Government Notification, using words "such as groundnut oil, gingelly oil and vanaspati" was only illustrative and not exhaustive Main issue for adjudication in said appeal was whether "margarine" could be treated as "edible oil" and thus would fall under entry 17A of Second Schedule to KGST Act, to have concessional rate of tax. Bench observed that, one has to consider whether margarine can be considered as edible oil, pointing out that "edible oil" was one which could be used for human consumption; simultaneously making it clear that, it was not necessary that all edible things should be consumed in form in which they were available Heading of entry 1516 reveals that, it could be animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, whether or not refined, but not further prepared Process of "emulsification" was not at all mentioned with regard to entries. It was for this reason, that product like "margarine" were separately enlisted under Head 1517, showing it as edible mixture All types of margarine, except liquid margarine, stand specifically included under HSN Code 1517.10 By virtue of entry 64(8) of SRO No. 82/2006 and description of commodity with HSN Code 1517.10, all margarine, except liquid margarine, were liable to attract higher rate of tax and there cannot be any distinction between "table margarine" and "industrial/ bakery margarine" Challenge raised by petitioners was not correct or sustainable Decided against the assessee.
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