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2019 (7) TMI 1670 - HC - VAT and Sales TaxClassification of goods - Lays, Kurkure, Cheetos, Quaker Oats - whether taxable in the residual entry under the provisions of Pondicherry Value Added Tax Act, 2007? - Notification issued on 31.07.2013 viz., G.O.Ms.No.25/F2/2013 by the Government of Puducherry - HELD THAT:- It is undoubted and as rightly referred and relied upon by the Coordinate Bench of Madras High Court in the case of Pepsico [2009 (11) TMI 851 - MADRAS HIGH COURT ] that in order to decide the questions like the one involved in the present case, the rule of interpretation is to adopt the common parlance test and the resort to residual entry cannot be made, unless by no conceivable process of reasoning, the commodities in question can be brought under any of the tariff items specified in the relevant Notification. As far as the settled legal position about invoking the residual entry and common parlance test is concerned, not much of the serious debate is now left to be decided and the above two yardsticks for interpreting the relevant Notification are now well settled viz., to apply common parlance test and the resort to residual entry only if it is not possible to bring the commodity in question in the specified entry. The Special Entry like the Special Law overrides the General Entry or the General Law. "Generalia Specialibus Non Derogant", is a settled maxim for interpretation. By the Dictionary meaning and common parlance test, again there is no iota of doubt that all broken grains or cereals including oats, when cooked with water or milk will result in a food item, which can be described as "Porridge". It is on the breakfast table for most of us. So, "Porridge" may be made of different grains and oats amongst them being one which in the present case, has been sold under the brand name of Quaker and the same cannot be ruled out of the definition of "Porridge", so as to fall in the Entry 99 of III Schedule of the taxable at 5% . Again, the contention of the learned counsel for the Revenue that it is to be taxed in the residual entry is devoid of any merit. The items in question viz., Potato Chips, Salted in the brand name of Lays, Salty Kurkure and Cheetos are taxable as 'Savories' at the rate of 2 % in the Notification dated 31.07.2013 and 'Quaker Oats' are taxable at 5 % as 'Porridge' - Revision allowed.
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