Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 838 - HC - VAT and Sales TaxDetermination of classification and rate of tax - Sodium Silicate declared not as a specified item under any of the entries of Part-'C' of IInd Schedule by Commissioner - Taxed as a residuary item @12.5% under Vth schedule of the VAT Act - Reasonable opportunity of hearing not provided to existing manufacturers - Held that:- the items that are listed as industrial inputs in Part-‘C’ of IInd Schedule of the VAT Act do not stand independently but refers to the corresponding entries in the C.E. Tariff Act. Therefore the determination of any question under Section 105(2) of the VAT Act, can’t be made, without due application of mind, to the implication of the entries of the C.E. Tariff Act. The item Sodium Silicate as is understood in common parlance (glass frit or compounds of rare earth metals) is also required to be considered in determination on the taxability of the product, as was represented by the manufacturer Association. Deciding the higher rate of tax at the instance of a new manufacturer, who is exempted from tax to make the Ruling applicable to those who are not exempted from tax was not a correct approach. Therefore as the Commissioner gave the ruling at the instance of an exempted party without affording any hearing to the existing manufacturers who are impacted by the said decision, the Commissioner is directed to re-determine the classification and the rate of tax for Sodium Silicate, by providing a reasonable opportunity of hearing to the Association. - Decidde in favour of appellant
|