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2015 (12) TMI 1337 - HC - VAT and Sales TaxDemand of tax and interest - Packed masala - AO was of the view that in so far as Asafoetida (Hing) is concerned, the tax of 4% only was being paid but the AO was of the view that it falls in the category of Packed Masala and once it is a Packed Masala, it falls in the entry where levy of tax is @16% - Held that:- When Entry No.82 is seen, the word used 'like' after masala and the legislature intended 'like' means mirchi, dhania, sonf, methi, ajwain, suwa, haldi, kathodi, amchoor and asalia jeera (cumin seeds), which, in my view, are illustrative and not exhaustive and therefore, all like items would also fall within the category of Entry No.82. The Entry No.184 prescribes Packed Masala where two or more ingredients are mixed and sold in packed conditions which was clarified by a notification issued by the Dy. Secretary, Finance Department (Tax Division), Government of Rajasthan vide notification dt.12/11/2001 to mean Packed Masala - Jaljira is made with grinding and mixing of different spices so that a new commercial commodity known by a different name comes up whereas in the case of preparing Asafoetida (Hing), spices are not mixed and only Gum Arabic and Wheat Flours are added which in my view are not spices. When spices are not mixed, it remains Asafoetida (Hing) only and no new product emerges. Even if we take common and commercial parlance meaning of the term "Masala", in my view, spices/Kirana items being sold singly would not come within the meaning of the term "Packed Masala" and in common and commercial parlance, Masala is always treated to be mixing of two and more spices and since Asafoetida (Hing) is not mixture of two and more spices, therefore, it cannot be termed as a Masala. It is also worth mentioning that the claim of counsel for the respondent that in most of the States Asafoetida (Hing) finds place in the list of Kirana goods, also supports contention of the Tax Board and the arguments raised by counsel for the respondents and not disputed by the counsel for the Revenue. - Tax Board has correctly analyzed the Entry No.82 and no contrary view can be taken in the facts and circumstances of the instant petitions. When the very levy of rate of tax @ 4% has been found to be properly levied then the question of penalty does not arise. - Decided against Revenue.
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