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2015 (8) TMI 636 - HC - VAT and Sales TaxRate of tax on pickle Taxation of goods at lower rate Pickle sold under brand name or not KVAT - Appellant seeks declaration that item pickle sold by appellant comes under entry 49, entitling his products to be taxed at 4 per cent Commissioner found out that pickles sold by appellant under brand name would be taxed at 12.5 per cent Held that:- goods can be taxed at 12.5 per cent only, if they do not fall under Schedule I or III having regard to section 6(1)(d) of Act Description of goods which come under HSN Code 2001, was exactly same as given in entry 84(29) State Legislature specifically provide for pickles and sought to tax it at four per cent unless it was sold under brand name Word "pickles" as used in entry 49 was distinct food product and not plant or vegetable which was preserved in vinegar or acetic acid Officer pointed out in notice that in all emblems "Happy", products including pickles were shown with circle with "(x)", no statutory warning was given in labels that pickles were not registered under Trade Marks Act, which indicates that either consumer was wilfully confused or falsely fascinated towards brand Going by reply given by trade mark registry, assesse obtained registration of its brand in respect of pickles to suffer tax at 12.5 per cent It was not sufficient that there was general registration obtained Though appellant may be using brand name "Happy" (label), there was no registration for trade mark for product "pickles" But, to deprive appellant of benefit of concessional rate of taxation (four per cent.) provided in entry 49, appellant must have obtained registration for trade mark in respect of pickles - Decided against the assessee. The product "pickles" marketed by the petitioner though it may be under a brand name, as the same has not been specifically registered under the Trade Marks Act 1999, the view taken by the assessing officer that the pickles cannot be taxed under entry 49 of the Third Schedule is unjustifiable. - Matter remanded back for adjudication in accordance with law.
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