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2018 (6) TMI 1661 - HC - VAT and Sales TaxValidity of assessment order - reduction in tax liability - bitumen emulsion purchased by the petitioner outside the State - Section 49(1) of the Chhattisgarh Value Added Tax Act, 2005 - It is the case of the petitioner that he is paying purchase tax on purchase of bitumen emulsion from unregistered dealers outside the State and using the same / bitumen in execution of works contract. Whether the assessing authority and the revisional authority are justified in holding that bitumen emulsion would not fall within Entry 23 under Part II of Schedule-II appended to the VAT Act and would fall within the residuary entry and VAT would be chargeable at the rate of 12.5%? HELD THAT:- The Supreme Court in A.R. Thermosets Private Limited's case [2016 (9) TMI 410 - SUPREME COURT] considered the question as to whether bitumen and bitumen emulsion are one and the same commodity for the purposes of interpretation of Entry 22 of Part A of Schedule II to the U.P. Value Added Tax Act, 2008 as was originally enacted and whether “bitumen emulsion” is covered within Entry 22 of Part A of Schedule II to the U.P. Value Added Tax Act, 2008 which only refers to “bitumen”. Their Lordships after detailed analysis of various dictionaries as well as Encyclopedia of Science and Technology defining “bitumen” held that the entry in question uses the word “bitumen” without any further stipulation or qualification and further held that bitumen emulsion is processed bitumen. Reverting to the facts of the present case, it is quite vivid that it has been held herein-above by the Supreme Court also while dealing with the question whether bitumen emulsion is covered within Entry 22 of Part A of Schedule II to the U.P. Value Added Tax Act, 2008, which only refers to bitumen that bitumen includes bitumen emulsion. It has also been held that the words inside the brackets i.e. coal-tar in front of bitumen would not control the meaning of the words outside the bracket and it would not curtail or limit the scope of the words employed outside the bracket. The word bitumen is also known as commercially, coal-tar as such, the word coal-tar in brackets in front of bitumen is only clarificatory in nature and would not control the meaning and scope of the word bitumen in Entry-23 under Part II of Schedule-II of the VAT Act. The bitumen emulsion is covered by Entry-23 of Part II of Schedule-II of the VAT Act and rate of VAT would be 4% or applicable rate as per notification. Petition allowed.
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