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2016 (5) TMI 827 - HC - VAT and Sales TaxWhether levy of tax under M.P. Commercial Tax Act, 1994, as per entry 22 of Part V of Schedule II on smokeless coke obtained from processing of coal purchased from registered dealer after paying full tax @ 4% is justified under law or not - Appellant engaged in conversion of coal into smokeless soft fuel, ie., smokeless coke by application of mechanized plants. Held that:- there was no need to list the coal and coke in other forms separately, because Entry No.22 of Part V of Schedule-II of the Madhya Pradesh Commercial Tax Act, 1994 is wide enough to cover all varieties of coal and byproducts of coal. Smokeless soft fuel fuel i.e. smokeless coke is a different commodity, its use is different from coal and coal-tar and carbon to some extent is separated from the coal by process of heating, burning and quenching, therefore, the manufactured item becomes different from coal. Provision of Section 9-B of the Madhya Pradesh Commercial Tax Act, 1994 is clear on this point and the Department has levied tax, in accordance with the aforesaid provision and has not levied double taxes, because it is levying only on difference of sale price and purchase price. Therefore, manufactured smokeless soft fuel i.e. smokeless coke out of coal is distinct commodity and also understood in common parlance different from coal, therefore, commodity manufactured is liable to tax under Section 9 of the Madhya Pradesh Commercial Tax Act, 1994. - Decided against the petitioner
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