Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 183 - HC - VAT and Sales TaxClassification and rate of tax - Nutralite - Appellant contended that Nutralite is made by emulsification of edible oil with water and comp rises of 70% edible oil whereas Commissioner of Commercial Taxes has reached the conclusion that Nutralite would be classified as “unscheduled goods” - Held that:- in the present case the classification only contemplates edible oil and since the Nutralite was different from edible oil the conclusion having been arrived at, may not be fair to the petitioner. The ingredients of the product are clearly shown to be consisting of 70% of edible oil and 26% of water. The other contents amounts to only 4%. Therefore, it is clearly a question of considering whether the product Nutralite which is also Margarine a generic term would describe the very product as edible oil or not. There is no reason to hold that the product shall not fall under the Entry “Edible Oil” and under the “Un-Scheduled Goods”. Therefore, the Commissioner’s reasoning and conclusion are clearly erroneous. Therefore, the “Nutralite” would fall under the Entry 31 of the Schedule III of the KVAT Act, ‘Edible Oil’ and would attract the rate of tax prescribed in respect of edible oils. - Decided in favour of appellant
|